Acc557 Financial Accounting: E10-12 Pueblo Company issued $300,000 of 5-year, 8% bonds at 98

Acc557 Financial Accounting

E10-12
Pueblo Company issued $300,000 of 5-year, 8% bonds at 98 on January 1, 2014. The bonds pay interest twice a year.
(a) (1) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(2) Compute the total cost of borrowing for these bonds.
(b) (1) Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 104. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(2) Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 104.
Powered by