Sky king company sold 9 million of four year 8 debentures, Ask an Expert

Accounting

Sky King Company sold 9 million of four year, 8% debentures on July 1, 2007. The bonds sold to yield a real rate of 7%. Interest is paid annually on June 30.

A. Determine the prize of the bonds.

B. Prepare an amortization schedule for the bonds.

C. Using a format, record the entry to the accounting system that is necessary to recognize interest on the bonds at June 30, 2008.

D. Assume the bonds had been sold to yield a real rate of 9%. At what price would they have sold?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9796808

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