Buy ACCT 221 On January 1- issued $10,000 of 6%, 5-year bonds at 102 at the best price of 9.99
On January 1: issued $10,000 of 6%, 5-year bonds at 102. Straight-line amortization method is used. IntereIt is payable semi-annual on July 1 and Jan1. On July 1: issued $500,000 of 10%, 10-year bonds at 88.5. Straight-line amortization method is used. Interest is payable semi-annual on July 1 and Jan1. On July 1: issued $10,000 of 8%, 10-year bonds for $10,853 cash. Straight-line amortization method is used. IntereIt is payable semi-annual on July 1 and Jan1.
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