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Interest Payable Assignment | Top Universities

Sunland issued $320,000 of 5%, 5-year bonds on January 1, 2021. Interest is payable semi-annually.

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Calculate the price of the bond: (a) 4%, (b) 5%, and (c) 6%. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer to 0 decimal places, e.g. 5,275.)

Click here to view the factor table. Present Value of 1
Click here to view the factor table. Present Value of an Annuity of 1

(a) Market interest rate 4% $enter a dollar amount rounded to 0 decimal places
(b) Market interest rate 5% $enter a dollar amount rounded to 0 decimal places
(c) Market interest rate 6% $enter a dollar amount rounded to 0 decimal places

Prepare the journal entry to record the issuance of the bond assuming the market rate of interest is: (a) 4%, (b) 5%, and (c) 6%. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.)

No. Account Titles and Explanation Debit Credit
(a) enter an account title to record issuance of bonds enter a debit amount enter a credit amount
enter an account title to record issuance of bonds enter a debit amount enter a credit amount
(To record issuance of bonds.)
(b) enter an account title to record issuance of bonds enter a debit amount enter a credit amount
enter an account title to record issuance of bonds enter a debit amount enter a credit amount
(To record issuance of bonds.)
(c) enter an account title to record issuance of bonds enter a debit amount enter a credit amount
enter an account title to record issuance of bonds enter a debit amount enter a credit amount
(To record issuance of bonds.)

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