Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. let say bank a issues $1,000,000 of 8% bonds on ju

Let say bank A issues $1,000,000 of 8% bonds on June 30, 2020 for $1,233,836(I...

60.1K

Verified Solution

Question

Accounting

Let say bank A issues $1,000,000 of 8% bonds on June 30, 2020 for $1,233,836(I did the work to save time, but if you check over my work would be great). The bond will mature June 30, 2030 and interest is paid semiannually on June 30 and December 31. The market rate of similar bonds are 5%.

Would I need to do anything else beside recording the issuance of the bond on June 30, 2020? Like would there be interest expense or decrease in bond payable on June 30, 2020?

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