Compute the total cost of borrowing the given bonds

Reference no: EM132086204

Question: Whitmore Company issued $434,000 of 5-year, 10% bonds at 97 on January 1, 2015. The bonds pay interest twice a year.

A) Prepare the journal entry to record the issuance of the bonds.

B) Compute the total cost of borrowing these bonds.

C) Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 105.

D) Compute the totaal cost of borrowing these bonds, assuming the bonds were issued at 105.

Reference no: EM132086204

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