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What total amount of bond interest expense will be recognize

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Reference no: EM132982364

Dawlance Company issues 12%, 10-year bonds with a par value of Rs. 200,000 and annual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 112. The effective interest method is used to allocate interest expense.

Problem A. What are the issuer's cash proceeds from issuance of these bonds?

Problem B. What total amount of bond interest expense will be recognized over life of these bonds?

Problem C. What amount of bond interest expense is recorded on the first interest payment date?

Problem ?D. Prepare the journal entries for the issuance of the bonds Prepare the journal entries for the issuance of the bonds. Also calculate market price.

Reference no: EM132982364

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