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On January 1, 2015, June 30 and December 31. The bonds matu is 14%. Determine the selling pric Co. issued $700,000 of 12% bon

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Answer #1

Selling price of bonds = present value of interest at 7% , 6 years + present value of maturity at 7%, 6 years

=700000*6%*4.767 + 700000*0.666

= $666414

Accounts Debit credit
Cash 666414
Discount on bonds payable 33586
Bonds payable 700000
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