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Prepare the journal entry for issuance assuming the bonds

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Question

On January 1, Renewable Energy issues bonds that have a $26,000 par value, mature in ten years, and pay 18% interest semiannually on June 30 and December 31.

1. Prepare the journal entry for issuance assuming the bonds are issued at (a) 99 and (b) 103½.

2. How much interest does the company pay (in cash) to its bondholders every six months if the bonds are sold at par?

Reference no: EM132345674

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