Reference no: EM131202191
On January 1, 2013, Drennen, Inc., issued $2.6 million face amount of 8-year, 18% stated rate bonds when market interest rates were 16%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2022
Calculate the proceeds (issue price) of Drennen, Inc.'s, bonds on January 1, 2013, assuming that the bonds were sold to provide a market rate of return to the investor. (Round your answer to the nearest whole dollar amount. (e.g., 32)
Proceeds:
Assume instead that the proceeds were $2,548,000. Record the journal entry to show the payment of semiannual interest and the related discount amortization on June 30, 2013, assuming that the discount of $52,000 is amortized on a straight-line basis.
Interest Expense:
Cash:
Discounts on Bonds Payable:
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: On January 1, 2013, Drennen, Inc., issued $2.6 million face amount of 8-year, 18% stated rate bonds when market interest rates were 16%. Calculate the proceeds (issue price) of Drennen, Inc.'s, bonds on January 1, 2013, assuming that the bonds were s..
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