Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 7) on january 1, 2019 jordan inc. issued a $450,00

7) On January 1, 2019 Jordan Inc. issued a $450,000 par value, 8% 6-year bond...

70.2K

Verified Solution

Question

Accounting

image

7) On January 1, 2019 Jordan Inc. issued a $450,000 par value, 8% 6-year bond with interest due semiannually on June 30 and December 31. At the time of issuance, the market rate of interest for bonds with similar risk was 10% Jordan accounts for its bonds using the effective interest method. Was this bond issued at a premium, discount, or at par? What is the journal entry to record the issuance? Assuming Jordan does not retire the bond prematurely, what is the total amount of cash Jordan will pay out associated with its periodic interest payments over the duration of the bond? (This is not the recorded interest expense, but the sum of the actual cash paid in association with periodic interest payments) What is Jordan's net balance for bond payable associated with this bond at the end of 2019? (Net balance is the gross amount for bond payable +/- the premium/discount on bond payable)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students