8/31/y1, $3,000,000 face value bonds are issued | |||
for $2,600,000 plus accrued interest. These bonds | |||
pay interest on October 31 and April 30. These | |||
bonds have a coupon rate of 6%, and are dated | |||
April 30, y1. The bonds are 20-year bonds, and | |||
as such mature on April 30, Y21. Please record the | |||
following, using the straight-line approach. This | |||
company has a December 31 year end. | |||
8/31/y1, issuance of the bonds (include accrued | |||
interest). | |||
10/31/y1, interest payment. | |||
12/31/y1, accrual of interest. | |||
4/30/y2, interest payment. | |||
Date | DR | CR | |
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