Flexsteel Industries manufactures furniture for the retail, contract, and recreational vehicle furniture markets. On January
Flexsteel Industries issued bonds dated January with a face amount of $ million. The bonds mature in years
For bonds of similar risk and maturity, the market yield is Interest is paid semiannually on June and December FV of $ PV
of $ FVA of $ PVA of $ FVAD of $ and PVAD of $Use appropriate factors from the tables provided.
Required:
Determine the price of the bonds at January
Prepare the journal entry to record the bond issuance by Flexsteel on January
Prepare the journal entry to record interest on June using the effective interest method.
Prepare the journal entry to record interest on December using the effective interest method.
