Solution 1:
The bonds were selling at a premium because the market rate of interest for similar quality bonds was lower than 7.5%.
Solution 2:
Journal Entries - Thomson Co. | |||
Date | Particulars | Debit | Credit |
1-May | Cash Dr | $780,000.00 | |
To Bond Payable | $780,000.00 | ||
(To record issue of bond) | |||
1-Nov | Interest Expense Dr | $42,900.00 | |
To Cash | $42,900.00 | ||
(To record interest payment) | |||
31-Dec | Interest Expense Dr | $14,300.00 | |
To Interest payable | $14,300.00 | ||
(To record interest accrued) |
is this correct? answer all this blank Bond Price United States Steel Corporation's 7.5% bonds due...
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