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Determine the selling price of the bonds

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Reference no: EM132610397

Question - On January 1, 2019, Golf Corporation issued $ 900,000, 4%, 5-year bonds dated January 1, 2019. The market rate of interest on January 1, 2019 was 6%. The bonds pay semi-annual interest on January 1 and July 1. The company has a December 31 year end.

Instructions -

a) Determine the selling price of the bonds (round final answer to the nearest $ 1,000).

b) Prepare all the journal entries that Golf Corporation would make related to this bond issue from issue date through to December 31, 2019.

Reference no: EM132610397

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