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28 Sep 2019
On January 1, 2016, Bishop Company issued 12% bonds datedJanuary 1, 2016, with a face amount of $100,000. The bonds maturein 2020 (5 years). For bonds of similar risk and maturity,themarket yield is 10%. Interest is paid semiannually on June 30 andDecember 31 . (SHOW AMORITIZATION SCHEDULE)
Required:
1. Determine the price of the bonds at January 1, 2016.
2. Prepare the journal entry to record the bond issuance byBishop on January 1, 2016.
3. Prepare the journal entry to record interest on June 30,2016, using the effective interest method method.
4. Prepare the journal entry to record interest on December 31 ,2016, using the effective interest method.
On January 1, 2016, Bishop Company issued 12% bonds datedJanuary 1, 2016, with a face amount of $100,000. The bonds maturein 2020 (5 years). For bonds of similar risk and maturity,themarket yield is 10%. Interest is paid semiannually on June 30 andDecember 31 . (SHOW AMORITIZATION SCHEDULE)
Required:
1. Determine the price of the bonds at January 1, 2016.
2. Prepare the journal entry to record the bond issuance byBishop on January 1, 2016.
3. Prepare the journal entry to record interest on June 30,2016, using the effective interest method method.
4. Prepare the journal entry to record interest on December 31 ,2016, using the effective interest method.
jeylam2666Lv10
27 Mar 2022
shitalbhusare12Lv10
27 Mar 2022
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Casey DurganLv2
28 Sep 2019
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