Leong Corporation was authorized to issue $500,000 face value bonds on January 1, 2015 The corporation issued $100,000 of face value bonds on that date The bonds will mature on December 31, 2018 Interest is paid semi annually on June 30 and December 31 each year The bond interest rate per the terms...

CASE A CASE B CASE C A Investors purchase the bonds at par B Investors purchase the bonds at a premi ...

Leong Corporation was authorized to issue $500,000 face value bonds on January 1, 2015. The corporation issued

Question:

Leong was authorized to issue $500,000 bonds on January 1, 2015. The issued $100,000 of bonds on that date. The bonds will mature on December 31, 2018. Interest is paid semi-annually on June 30 and December 31 each year. The bond interest rate per the terms of the indenture is 12% per year.
Required: Answer the questions for each of the following cases.
Case A: The bonds were issued at B: The bonds were issued for $112,000.
Case C: The bonds were issued for $88,000.
1. How much cash does Leong receive for the bonds?
2. How much annual interest must the pay? On what amount does the pay?
3. Prepare the journal entry to record the sale of the bonds.
4. Record the entries applicable to interest and straight-line amortization for June 30, 2015 and for December 31, 2015. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...