The rate of interest that actually is incurred on a bond payable is called the:

Ordinarily, the proceeds from the sale of a bond issue will be equal to the:

Seaside issues a bond that has a stated interest rate of 12%, face amount of $50,000, and is due in 5 years. Interest payments are made semi-annually. The market rate for this type of bond is 14%. What is the issue price of the bond?

Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

On January 31, 2024, B Corporation issued $600,000 face value, 12% bonds for $600,000 cash. The bonds are dated December 31, 2023, and mature on December 31, 2033. Interest will be paid semiannually on June 30 and December 31.

What amount of accrued interest payable should B report in its September 30, 2024, balance sheet?

On January 1, 2024, for $18.2 million, Marker Company issued 10% bonds, dated January 1, 2024, with a face amount of $20.2 million. For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31.

Required:

Prepare the journal entry to record interest on June 30, 2024, using the effective interest method.
Prepare the journal entry to record interest on December 31, 2024, using the effective interest method.