On January 1, 2021, Golf Corporation issued $ 900,000, 8%, 5-year bonds dated January 1, 2021, to yield 9%. The bonds pay semi-annual interest on January 1 and July 1. The company has a December 31 year end.
Instructions
a) Calculate the selling price of the bond (round final answer to the nearest $ 1,000).
b) Prepare all the journal entries that Golf Corporation would make related to this bond issue from issue date through to January 1, 2022.

Question

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The Answer of On January 1, 2021, Golf Corporation issued $ 900,000, 8%, 5-year bonds dated January 1, 2021, to yield 9%. The bonds pay semi-annual interest on January 1 and July 1. The company has a December 31 year end.
Instructions
a) Calculate the selling price of the bond (round final answer to the nearest $ 1,000).
b) Prepare all the journal entries that Golf Corporation would make related to this bond issue from issue date through to January 1, 2022.

On January 1, 2021, Golf Corporation Issued $ 900,000, 8