Determine the balance in each company bonds payable account

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When market interest rates were 6%, three companies issued bonds on January 1, 2021. Each company has a December 31 year end and each company issued bonds with a face value of $100,000 that pay interest annually on December 31. Bramble Limited sold its bonds at 100 and offered a coupon interest rate of 6%, while Vaughn Corp. sold its bonds at 96 and offered a coupon interest rate of 5%, and Sheffield Inc. sold its bonds at 107 and offered a 8% coupon interest rate.

Problem 1: Record the issue of the bonds by each company on January 1, 2021.

Problem 2: Prepare the entry that each company would record for the payment of interest on December 31, 2021.

Problem 3: Determine the balance in each company's Bonds Payable account on December 31, 2021.

Reference no: EM132818110

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