Record the bond issue on january

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Question: Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2012, the company issues $2,000,000 of 8% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.

Required: 1. If the market interest rate is 8%, the bonds will issue at $2,000,000. Record the bond issue on January 1, 2012, and the first two semiannual interest payments on June 30, 2012, and December 31, 2012.

2. If the market interest rate is 9%, the bonds will issue at $1,869,921. Record the bond issue on January 1, 2012, and the first two semiannual interest payments on June 30, 2012, and December 31, 2012.

3. If the market interest rate is 7%, the bonds will issue at $2,142,124. Record the bond issue on January 1, 2012, and the first two semiannual interest payments on June 30, 2012, and December 31, 2012.

Reference no: EM131521713

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