Sears issues bonds with a par value of $175,000 on January 1, 2009. The bonds' annual contract rate is 4%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 6%, and the bonds are sold for $165,523. ...

Any help on journalizing the following entries would be very much appreciated!! More than anything, I need to know how to arrive at the correct answers. Even a little assistance would be extremely helpful. October 1: Retirement of bonds The company issued check 10500 and retired 􀀁 of its...

How do you journalize an entry for bonds issued?

General Toys, Inc. sold five year bonds having a face value of $100,000 and a coupon rate of 7% when the market rate was 9%. The present value of $1 at 9% for five periods is $0.6499. The present value of a $1 annuity for 5 periods at 9% is $3.8897. At what price did these bonds sell? I came up...