Explain me how do I know which bond uses discount or premium Columbus Company issued...
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Explain me how do I know which bond uses discount or premium
Columbus Company issued $40,000 of 10-year, 5% bonds payable on January 1, 2018. Columbus Company pays interest each January 1 and July 1 and amortizes discount or premium by the straight-line amortization method. The company can issue its bonds payable under various conditions. 1.Journalize Columbus Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at face value. Explanations are not required. 2.Journalize Columbus Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at 90. Explanations are not required. 3.Journalize Columbus Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at 103. Explanations are not required. 4.Which bond price results in the most interest expense for Columbus Company? Explain in detail.
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