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Business, 26.03.2021 04:20 RavenousLlama

On January 1, 2020, XYZ Co. issued a bond with a $400,000 par (face) value. The bond is a 5-year bond and will mature on December 31, 2025. The bond has a contract rate of interest of 5% and interest is paid semi-annually on June 30 and December 31 of each year. On January 1, 2020, the market rate of interest for bonds was 6%. The issue price of the bond was $382,942. The journal entry to record issuance of the bond would be:

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On January 1, 2020, XYZ Co. issued a bond with a $400,000 par (face) value. The bond is a 5-year bon...
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