Maurice Tutor

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    Argosy University/ Phoniex University/
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Category > Accounting Posted 21 Sep 2017 My Price 4.00

Coral Sands Marina

Coral Sands Marina issued 100 ten-year bonds July 1, 2012. The interest payments are due semiannually (January 1 and July 1) at an annual rate of 8 percent. The effective rate on the bonds is 6 percent. The face value of each bond is $1,000.
(a) Prepare the journal entry that would be recorded on July 1, 2012, when the bonds are issued.
(b) Prepare the journal entries that would be recorded on December 31, 2012.
(c) Compute the balance sheet value of the bond liability as of December 31, 2012.
(d) Compute the present value of the bonds remaining cash flows as of December 31, 2012, using the effective rate at the time the bonds were issued. Explain the relationship between the balance sheet value of the liability and the present value of the future cash payments.

Answers

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Status NEW Posted 21 Sep 2017 09:09 PM My Price 4.00

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