A Company Issued 10-Year, 9% Bonds with a Par Value

question 127

Essay

A company issued 10-year, 9% bonds with a par value of $500,000 when the market rate was 9.5%. The company received $484,087 in cash proceeds. Using the effective interest method, prepare the issuer's journal entry to record the first semiannual interest payment and the amortization of any bond discount or premium.

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Definitions:

Emergency Phone Numbers

Specific numbers designated for immediate assistance from police, fire departments, or medical services during emergencies.

Good Ventilation

Adequate movement and exchange of indoor air with outdoor air to dilute indoor pollutants and enhance air quality.

Hazardous Waste

Waste materials that are dangerous or potentially harmful to human health or the environment.

RCRA

The Resource Conservation and Recovery Act, a United States federal law governing the disposal of solid and hazardous waste.