Question
1. On July 1, 2025, Reliable Services issued $52,000 of 11% bonds that mature in five years for $64,000 for $70,000. The bonds pay semiannual
1. On July 1, 2025, Reliable Services issued $52,000 of 11% bonds that mature in five years for $64,000 for $70,000. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On December 31, 2025, what is the total amount paid to bondholders____________?
2. The balance in the Bonds Payable account is a credit of $91,000. The balance in the Premium on Bonds Payable account is a credit of $1,190. The bond has an 8% stated interest rate and a 9% market interest rate. The bond's carrying amount is $_____________.
3. Crystal Glassware Company issues $1,127,000 of its 8%, 10-year bonds at 99 on February 28, 2025. The bonds pay interest on February 28 and August 31. Assume that Crystal uses the straight-line method for amortization. What net amount will be reported for the bonds on the August 31, 2025 balance sheet ___________?
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