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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.

Solutions

Expert Solution

a)

b)

c)

ekkarill92 answered 1 year ago
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