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Calculate the amount of cash haulem received

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Reference no: EM133150495

Question - Haulem Equipment Inc. issued $75 million in 20-year bonds to finance the expansion of its school bus manufacturing operations in Winnipeg. The bonds pay 5% interest semi-annually and were issued at 78.645 to yield 7%.

Required -

1. Calculate the amount of cash Haulem received on issuance of the bonds.

2. Prepare the journal entry to record the amount of cash Haulem received on issuance of the bonds.

3. Prepare the journal entries to record the first two interest payments. Ignore year-end accruals of interest.

4. Calculate the carrying value of the bonds one year after issuance (that is, after the second semi-annual payment).

Reference no: EM133150495

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