5 Part 1 of 4 1.07 points Required information P10-6 (Static) Recording and Reporting Bonds Issued at a Discount LO10-4 [The following information applies to the questions displayed below] PowerTap Utilities is planning to issue bonds with a face value of $1,000,000 and a coupon rate of 10 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. PowerTap uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent. (EV of $1. PV of $1. EVA of $1, and PVA of S1) (Use the appropriate factor(s) from the tables provided.) P10-6 Part 1 Required: 1. What was the issue price on January 1 of this year? (Round your final answers to nearest whole dollar amount.) Answer is complete but not entirely correct. issue price $ 1,040,391 6 Part 2 of 4 1.07 points Skipped eBook References Required information P10-6 (Static) Recording and Reporting Bonds Issued at a Discount LO10-4 [The following information applies to the questions displayed below.) PowerTap Utilities is planning to issue bonds with a face value of $1,000,000 and a coupon rate of 10 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year, PowerTap uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent. (EV of $1. PV of $1. EVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) P10-6 Part 2 2. What amount of interest expense should be recorded on June 30 and December 31 of this year? (Round your final answers to nearest whole dollar amount.) Interest expense June 30 December 311 Check my work 7 Part 3 of 4 107 points Skipped eBook Required information P10-6 (Static) Recording and Reporting Bonds Issued at a Discount LO10-4 [The following information applies to the questions displayed below) PowerTap Utilities is planning to issue bonds with a face value of $1,000,000 and a coupon rate of 10 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. PowerTap uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent. (EV of $1. PV of $1. EVA of $1, and PVA of 5) (Use the appropriate factor(s) from the tables provided) P10-6 Part 3 3. What amount of cash should be paid to investors June 30 and December 31 of this year? References Cash paid June 30 December 31 8 Part 4 of 4 1.07 points Skipped Required information P10-6 (Static) Recording and Reporting Bonds Issued at a Discount LO10-4 [The following information applies to the questions displayed below] PowerTap Utilities is planning to issue bonds with a face value of $1,000,000 and a coupon rate of 10 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 11 of this year. PowerTap uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent. (EV of $1. PV of $1. EVA of $1, and PVA of S1) (Use the appropriate factor(s) from the tables provided.) Check my work eBook References 9. P10-6 Part 4. 4. What is the book value of the bonds on June 30 and December 31 of this year? (Round your final answers to nearest whole dollar amount.) June 30 December 31 Bonds payable