Compute the selling price of the bond

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Question - On 1 Jan, Razor Corp, a wholesaler of radio equipment, issued $80,000 of the five year, 10% contract rate bond at a market interest rate of 14%. Interest on the bonds is payable semiannually.

a- Compute the selling price of the bond.

b- Journalize the entry to record the amount of the cash proceeds from the sale of the bonds.

c- Journalize the entry to record the first semiannual interest payment and the amortization of the bond using the straight line.

d- Journalize the retirement of the bond at the end of the contract period.

Reference no: EM131782165

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