On October 1, 2016 Macklin Corporation issued 10-year bonds with a face value of $40,000,000. Interest...

On October 1, 2016 Macklin Corporation issued 10-year bonds with a face value of $40,000,000. Interest is paid annually on December 31. The company uses the effective interest method. Coupon rate is 2% and market rate is 4%

a) Find the issue price.

b) The entry to record the issuance of the bonds.

c) Prepare the journal entry to record the first interest payment on December 31.

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Expert Solution

ekkarill92 answered 9 months ago

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