Acc280 Financial Accounting: E15-7 Deng Company issued $500,000

Acc280 Financial Accounting
E15-7
Deng Company issued $500,000 of 5-year, 8% bonds at 97 on January 1, 2010. The bonds pay interest twice a year.

A1. Prepare the journal entry to record the issuance of the bonds. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
2. Compute the total cost of borrowing for these bonds.
B1. Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 105. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
2. Compute the total cost of borrowing for these bonds.
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