3. XYZ issues a 15-year, $20,000,000 bond on September 1, 2019 with a stated interest rate...

3. XYZ issues a 15-year, $20,000,000 bond on September 1, 2019 with a stated interest rate of 3.4%, payable semiannually. Market interest rates on September 1, 2019 were 3.8%. Prepare the journal entry to record the transaction on September 1, 2019.

4. Prepare the journal entries to record interest expense and other accounts for XYZ’s bond for the first 2 interest payments (ignore year-end accruals)

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ekkarill92 answered 2 years ago

3. XYZ issues a 15-year, $20,000,000 bond on September 1, 2019 with a stated interest rate...

3. XYZ issues a 15-year, $20,000,000 bond on September 1, 2019 with a stated interest rate of 3.4%, payable semiannually. Market interest rates on September 1, 2019 were 3.8%. Prepare the journal entry to record the transaction on September 1, 2019. 4. Prepare the journal entries to record interest expense and other accounts for XYZ’s bond for the first 2 interest payments (ignore year-end accruals)

1. XYZ issues a 15-year, $20,000,000 bond on September 1, 2019 with a stated interest rate...

1. XYZ issues a 15-year, $20,000,000 bond on September 1, 2019 with a stated interest rate of 3.4%, payable semiannually. Market interest rates on September 1, 2019 were 3.8%. Prepare the journal entry to record the transaction on September 1, 2019. 2. Prepare the journal entries to record interest expense and other accounts for XYZ’s bond for the first 2 interest payments (ignore year-end accruals)

You are selling $20,000,000 of $1,000, 10 year bonds with a stated rate of 4.7% interest....

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Distinguish how a stated rate and the market rate of interest are calculated for a bond.

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3. XYZ issues a 15-year, $20,000,000 bond on September 1, 2019 with a stated interest rate...

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