Whitmore agency issued $500,000 of 5-year, 8% bonds at 97 onJanuary 1, 2015. The bonds salary interest double a year.

A. Prepare the journal entry to record the issuance of thebonds. Compute the total cost that borrowing for these bonds.

B. Repeat the demands from part (a), presume the bondswere issued in ~ 105.

Account TitlesDebitCredit
(a) (1)
(b) (1)Account TitlesDebitCredit

You are watching: Compute the total cost of borrowing for these bonds.


1) newspaper ENTRY :

Jan 1Cash A/c.........................Dr485000 
 Discount on binding payable A/c.......Dr15000 
  8% binding payable A/c 500000
 (To record problem of binding payable)



See more: India Vs South Africa 5Th Odi 2015 Live Streaming, Free Live Streaming Of Ind Vs Sa 5Th Odi


Looking because that Something Else? asking a comparable Question

Ask currently

Couldn"t uncover What girlfriend Were trying to find ?

asking Your question Now!

Get it resolved from our top experts within 48hrs!