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Show the journal entry required upon issuance (include the date)

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Given Information;Face Value: $290,000;Maturity Date: 12/31/2019;Stated Rate: 7%;Interest Payment Dates: 6/30, 12/31;Issuance Date: 1/1/2010;Issuance Price: 94;Requirements;Journal Entries (see next page);1. Show the journal entry required upon issuance (include the date);2. Show the journal entry required for first interest payment.;3. Show the journal entry required upon maturity (include the final interest payment).;Additional Questions (see next page);4. What happens to the discount/premium over the life of the bond?;5. What happens to the carrying value?

 

Paper#26749 | Written in 18-Jul-2015

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