Determine issue price of serial bonds forthurman co

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Reference no: EM132972302

On January 1, 2020, Thurman Co. issued bonds with face value of 8,000,000. The nominal rate of 6% is payable annually on December 31. The bonds are issued with an 8% effective yield. The bonds mature on every December 31 each year at the rate of 2,000,000 for 4 years.

Requirement:

Problem A: Determine the following: (Round off present value factors to four decimal places & show the amortization table)

1. Issue price of the serial bonds
2. Interest expense in 2020
3. Carrying value of the serial bonds payable at December 31, 2020.
4. Entries to record transactions in 2020.

Reference no: EM132972302

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