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Record the retirement of the bonds on august

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Reference no: EM132833776

The Vancouver Canucks issued ten year, $2 million bonds on August 1, 2020 with a coupon rate of 7%, at $1,864,097. This price reflected the prevailing market interest rate on similar risk rated bonds of 8%. Interest is paid on a semi annual basis every August 1st and February 1st. The Vancouver Canucks have a July 31 year end.

Instructions

Problem (a) Is the bond being issued at a premium or discount? Why?

Problem (b) Record the issue of the bonds on August 1, 2020

Problem (c) Record the payment of interest on Feb 1, 2021.

Problem (d) Record the accrual of interest on July 31, 2021.

Problem (e) Record the retirement of the bonds on August 1, 2030.

Reference no: EM132833776

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