On January Bishop Company 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
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
Required:
Determine the price of the bonds on Jarfuary
Prepare the journal entry to record the bond issuance by Bishop 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.
Complete this question by entering your answers in the tabs below.
Required
Required
Determine the price of the bonds on January
Note: Enter your answers in whole dollars not in millions ie not Round your intermediate calculations and
final answer to the nearest whole dollar.
