5. 6. 4. 3. Texxon Corporation issued $200,000 of 10-year bonds with a payment rate of 6%; payments are made semiannually. Assume that the market interest rate for similar investments is 4%, compounded semiannually. 1. 2. What is the semi-annual cash payment amount for this bond issue? a. $12,000 b. $6,000 c. $8,000 d. $4,000 What is the present value (issue price) of this bond issue at the market rate of interest? a. $199,478 b. $98,106 c. $232,706 d. $134,600 How much bond interest expense should be recorded on the first semi-annual interest payment date? a. $4,654.12 b. $4,000.00 c. $9,308.24 d. $6,000.00 These bonds would be issued at a premium (i.e., your answer to #2 should be more than $200,000). What amount of premium will be amortized on the first semi-annual interest payment date? a. $2,000.00 b. $2,654.12 c. $1,462.88 d. $1,345.88 What is the carrying value of the bonds after the first semi-annual interest payment date (i.e., what amount of debt will be left)? a. $231,360.12 b. $198.423.88 c. $234,768.90 d. $196,792.36 The journal entry that would be made to record the issue of these bonds would include: a. a debit to Cash for $134,600 b. a credit to Bonds Payable for $200,000 c. a credit to Premium on Bonds Payable for $98,106 d. a credit to Cash for $232,706

Texxon Corporation issued $200,000 of 10 -year bonds with a payment rate of 6%; payments are made semiannually. Assume that the market interest rate for similar investments is 4%, compounded semiannually. 1. What is the semi-annual cash payment amount for this bond issue? a. $12,000 b. $6,000 c. $8,000 d. $4,000 2. What is the present value (issue price) of this bond issue at the market rate of interest? a. $199,478 b. $98,106 c. $232,706 d. $134,600 3. How much bond interest expense should be recorded on the first semi-annual interest payment date? a. $4,654.12 b. $4,000.00 c. $9,308.24 d. $6,000.00 4. These bonds would be issued at a premium (i.e., your answer to #2 should be more than $200,000 ). What amount of premium will be amortized on the first semi-annual interest payment date? a. $2,000.00 b. $2,654.12 c. $1,462.88 d. $1,345.88 5. What is the carrying value of the bonds after the first semi-annual interest payment date (i.e., what amount of debt will be left)? a. $231,360.12 b. $198.423.88 c. $234,768.90 d. $196,792.36 6. The journal entry that would be made to record the issue of these bonds would include: a. a debit to Cash for $134,600 b. a credit to Bonds Payable for $200,000 c. a credit to Premium on Bonds Payable for $98,106 d. a credit to Cash for $232,706 Texxon Corporation issued $200,000 of 10 -year bonds with a payment rate of 6%; payments are made semiannually. Assume that the market interest rate for similar investments is 4%, compounded semiannually. 1. What is the semi-annual cash payment amount for this bond issue? a. $12,000 b. $6,000 c. $8,000 d. $4,000 2. What is the present value (issue price) of this bond issue at the market rate of interest? a. $199,478 b. $98,106 c. $232,706 d. $134,600 3. How much bond interest expense should be recorded on the first semi-annual interest payment date? a. $4,654.12 b. $4,000.00 c. $9,308.24 d. $6,000.00 4. These bonds would be issued at a premium (i.e., your answer to #2 should be more than $200,000 ). What amount of premium will be amortized on the first semi-annual interest payment date? a. $2,000.00 b. $2,654.12 c. $1,462.88 d. $1,345.88 5. What is the carrying value of the bonds after the first semi-annual interest payment date (i.e., what amount of debt will be left)? a. $231,360.12 b. $198.423.88 c. $234,768.90 d. $196,792.36 6. The journal entry that would be made to record the issue of these bonds would include: a. a debit to Cash for $134,600 b. a credit to Bonds Payable for $200,000 c. a credit to Premium on Bonds Payable for $98,106 d. a credit to Cash for $232,706