Superb Drive-Ins borrowed money by issuing $5,000,000 of 5% bonds payable at 92.5 . Interest...
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Superb Drive-Ins borrowed money by issuing $5,000,000 of 5% bonds payable at 92.5 . Interest is paid semiannualy. Requirements 1. How much cash did Superb receive when it issued the bonds payable? 2. How much must Superb pay back at maturity? 3. How much cash interest will Superb pay each six months? Requirement 1. How much cash did Superb receive when it issued the bonds payable? Amount of cash Superb recelved when the bonds payable were issued = Prince Cornpany issued a $600,000,9%, five-year bond payable at tace value on January 1, 2024. Interest is paid semiannualy on January 1 and July 1. Requirements 1. Joumalize the issuance of the bond payable on January 1,2024 2. Journalize the payment of semiannual interest on July 1,2024
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