On january 1,2014, Lowry Co. issued five- year bonds with a face value of $200,000...
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Accounting
On january 1,2014, Lowry Co. issued five- year bonds with a face value of $200,000 and a stated interest rate of 10%, payable semiannually on july 1 and January 1. The bonds were sold to yield 12%. The firm uses the effective- interest method of amortizing discounts and premiums.
A) Calculate the price of the bond in dollars
B) Calculate the price of the bond as percentage
C) Prepare the journal entry to record the issuance of the bonds.
D) Create amortization schedule
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