On January 31, Year 4, Yellow Corp. issued $1,000,000 of 10-year, 6% coupon bonds with interest paid twice per year on January 31 and July 31. The market rate was 8%. Year end is December 31. On January 31, Year 5, after paying interest, Yellow Corp. retired 60% of the bonds at 91. Yellow Corp. follows IFRS. Required a. Rounding all values to the nearest dollar, calculate the issue price of the bond. b. Prepare all journal entries for the bonds from issue to partial redemption.
On January 31, Year 4, Yellow Corp. issued $1,000,000 of 10-year, 6% coupon bonds with interest paid twice per year on January 31 and July 31. The market rate was 8%. Year end is December 31. On January 31, Year 5, after paying interest, Yellow Corp. retired 60% of the bonds at 91. Yellow Corp. follows IFRS. Required a. Rounding all values to the nearest dollar, calculate the issue price of the bond. b. Prepare all journal entries for the bonds from issue to partial redemption.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...
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