Hartford Research issues bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The bonds have a $40,000 par value and an annual contract rate of 10%, and they mature in 10 years.
A. The market rate at the date of issuance is 8%,
Prepare the journal entry for Jan1,2015
B. The market rate at the date of issuance is 10%. Prepare the journal entry for Jan 01, 2015
C. The market rate at the date of issuance is 12%. Prepare the journal entry for Jan 01, 2015