Question - Nordic Company issued bonds with the following provisions:
Maturity value: $60,000,000. Interest: 7.9 percent per annum payable semi-annually each June 30 and December 31.
Terms: Bonds dated January 1, 2017, due five years from that date.
The company's fiscal year ends on December 31. The hands were sold on January 1, 2017, at a yield of 8 percent.
Required:
1. Compute the issue (sale) price of the bonds.
2. Prepare the journal entry to record the issuance of the bonds.