On June 30, 2017, Mitty Inc. issues $5,000,000 face value bonds with a coupon rate of...

On June 30, 2017, Mitty Inc. issues $5,000,000 face value bonds with a coupon rate of 5% issued to yield 7%. The bonds pay interest semi-annually on June 30 and December 31 and mature 20 years from the date of issuance. Mitty Inc uses the effect-interest rate method for recording bond amortization. Please show all work.

Required: Prepare the journal entry for the bonds at the date of issuance.

Required: Prepare the journal entry at June 30, 2018.

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Expert Solution

Calculation of issue price and the amount of discount amortization

ekkarill92 answered 1 year ago

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