P15-1B Focalpoint.com issued $600.000 of 20-year, 9% bonds payable at par on February 1. 20X3. The bonds
Question:
P15-1B Focalpoint.com issued $600.000 of 20-year, 9% bonds payable at par on February 1. 20X3. The bonds pay interest each January 31 and July 31. and the company ends its accounting year on December 31. 1. Fill in the blanks to complete these statements:
a. Focalpoint.com's bonds are priced at (express the price as a percentage).
b. When Focalpoint.com issued its bonds, the market interest rate was %.
c. The amount of bond discount or premium for Focalpoint.com to account for is S. because the bonds were issued at 2. Journalize for Focalpoint.com
a. Issuance of the bonds payable on February 1, 20X3.
b. Payment of interest on July 31, 20X3.
c. Accrual of interest at December 31, 20X3.
d. Payment of interest on January 31, 20X4. 3. Show what Focalpoint.com will report on its income statement for 20X3 and on its bal- ance sheet at December 31, 20X3.
Step by Step Answer:
Accounting
ISBN: 9780130906991
5th Edition
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones