Carr Corporation issued $46,000 of 5 percent, 8-year bonds on January 1, Year 1, for...
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Carr Corporation issued $46,000 of 5 percent, 8-year bonds on January 1, Year 1, for a price that reflected a 6 percent market rate of interest. Interest is payable annually on December 31. To determine the appropriate discount factor(s) using tables, click here to view Tables l, L IL or IV in the appendix. Alternatively, if you calculate the discount factor(s) using a formula, round to six (6) decimal places before using the factor in the problem. Required a. What was the selling price of the bonds? (Round your intermediate calculations and final answer to the nearest dollar amount.) Selling priceS 43,144 b. Prepare the journal entry to record issuing the bonds. (Round your intermediate calculations and final answers to the nearest dollar amount. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Event General Journal Debit Credit Cash Discount on bonds payable 3,144 2,856 Bonds payable 46,000
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