Unix, Inc., issued $200,000 of 8%. ten-year bonds payable at at price of 110 on May 31,
Question:
Unix, Inc., issued $200,000 of 8%. ten-year bonds payable at at price of 110 on May 31, 20X2. The market interest rate at the date of issuance was 6%, and the Unix bonds pay interest semiannually. 1. How much cash did Unix receive upon issuance of the bonds payable? 2. Prepare an effective-interest amortization table for the bond premium, through the first three interest payments. Use Exhibit 15-6 (page 591) as a guide, and round amounts to the nearest dollar. 3. Record Unix's issuance of the bonds on May 31, 20X2. and, on November 30, 20X2. pay- ment of the first semiannual interest amount and amortization of the bond premium. Explanations are not required.
Step by Step Answer:
Accounting
ISBN: 9780130906991
5th Edition
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones