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Viking Voyager specializes in the design and production of replica Viking boats.

ID: 2651851 • Letter: V

Question

Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2015, the company issues $1,900,000 of 9% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year..

if the market interest rate is 9%, the bonds will issue at $1,900,000. Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015.

If the market interest rate is 10%, the bonds will issue at $1,753,962. Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015

If the market interest rate is 9%, the bonds will issue at $1,900,000. Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015

Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2015, the company issues $1,900,000 of 9% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year..

if the market interest rate is 9%, the bonds will issue at $1,900,000. Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015.

If the market interest rate is 10%, the bonds will issue at $1,753,962. Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015

If the market interest rate is 9%, the bonds will issue at $1,900,000. Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015

Explanation / Answer

Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2015, the company issues $1,900,000 of 9% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year..

if the market interest rate is 9%, the bonds will issue at $1,900,000. Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015.

If the market interest rate is 10%, the bonds will issue at $1,753,962. Record the bond issue on January 1, 2015, and the first two semiannual interest payments on June 30, 2015, and December 31, 2015

Date Accounts Title Debit Credit 01-Jan-15 Cash          1,900,000 Bonds Payable          1,900,000 30-Jun-15 Interest on Bonds Payable                85,500 Cash                85,500 31-Dec-15 Interest on Bonds Payable                85,500 Cash                85,500