On September 1, 2021, Guss Corporation issued $ 1,000,000, 6%, 10-year bonds. Interest is payable annually with the first payment due on September 1, 2022.
Instructions
Prepare the appropriate journal entry to record the bond issuance on September 1, 2021 under each of the following market rate assumptions:
a) 6%,
b) 5%, and
c) 7%. Round answers to the nearest dollar.

Question

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The Answer of On September 1, 2021, Guss Corporation issued $ 1,000,000, 6%, 10-year bonds. Interest is payable annually with the first payment due on September 1, 2022.
Instructions
Prepare the appropriate journal entry to record the bond issuance on September 1, 2021 under each of the following market rate assumptions:
a) 6%,
b) 5%, and
c) 7%. Round answers to the nearest dollar.

On September 1, 2021, Guss Corporation Issued $ 1,000,000, 6