Answer:
$1,608,000
Explanation:
the clean price = $1,600,000 x 0.98 = $1,568,000 (it does not include accrued interests)
accrued interests = $1,600,000 x 10% x 3/12 months = $40,000
dirty price = clean price + accrued interests = $1,568,000 + $40,000 = $1,608,000
the journal entry should be:
September 1, 2021
Dr Cash 1,608,000
Dr Discount on bonds payable 32,000
Cr Bonds payable 1,600,000
Cr Interest payable 40,000
