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Determine the issue price of the bonds on March

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Question - On March 1, 2010, Z-Best Co. issued $700,000 of 10 percent bonds to yield 8 percent. Interest is payable semiannually on February 28 and August 31. The bonds mature in ten years. Z-Best Co. has a December 31 year end.

Required -

(1) Determine the issue price of the bonds on March 1. Show your computations.

(2) Prepare the journal entries to record bond-related transactions as of the following dates:

(a) March 1, 2010

(b) August 31, 2010

(c) December 31, 2010

(d) February 28, 2011

Reference no: EM132676898

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