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Accounting for Notes Issues at a Premium The Longo Corporation issued $ 3 million maturity value of 8 percent coupon rate notes, with interest paid
Accounting for Notes Issues at a Premium
The Longo Corporation issued $ million maturity value of percent coupon rate notes, with interest paid semiannually.
At the time of the note issuance, equivalent riskrated debt instruments carried a yield rate of percent. The notes matured in years.
Calculate the proceeds that the Longo Corporation would receive from the sale of the notes.
Round your answer to the nearest dollar.
How will the notes be reported on Longo's balance sheet immediately following the sale?
Round your answers to the nearest dollar.
tableBonds payable,$Plus: Bond Premium,$Book Value,$
Calculate the interest expense on the notes for the first year.
Round answers to the nearest dollar.
tableFirst six months,$Second six months,$
Calculate the book value of the notes at the end of the first year.
Round answer to the nearest dollar.
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