Home / Questions / On July 1, 20x8, Aloha Corporation issued bonds with a face value of $400,000. The bonds c
On July 1, 20x8, Aloha Corporation issued bonds with a face value of $400,000. The bonds carry a face interest rate of 8 percent that is payable each July 1 and January 1.
a. Prepare the entry in journal form for the issuance of the bonds assuming the bonds are issued at 98.
b. Prepare the entry in journal form for the issuance of the bonds assuming the bonds are issued at 101.
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General Journal |
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192.When a bond sells at a premium, what is probably true about the market interest rate versus the face interest rate? Discuss.
193.When a bond sells at a discount, what is probably true about the market interest rate versus the face interest rate? Discuss.
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