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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 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.

 

General Journal

Page 1

Date

Description

Post.

Ref.

Debit

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

             

 

 

 

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.

Dec 10 2019 View more View Less

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