ACCOUNTING

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Take me to the text A company issued $1,180,000 worth of 9-year bonds with a 2% interest rate. Interest is to be paid annually. The bond issue date is January 1, 2020 and the company has a year-end of December 31. Calculate the bond issue price under each market interest rate. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. For bond calculations use the PV tables at the end of Chapter 7 textbook or use a financial calculator Market Interest Rate Bond Price 1% X 2% 3% Take me to the text A company is issuing $350,000 worth of 5-year bonds on August 8, 2020, bearing an interest rate of 4%, payable annually. Assume that the current market rate of interest is 7% a) Will the bonds be issued at a discount or at a premium? b) Calculate the value of the resulting discount or premium. c) Record the journal entry to reflect the sale of bonds and the appropriate discount or premium Note that the present value factor for the principal is 0.7130 (7%, 5-years) and that the present value factor for the recurring interest payment is 4.1002 (7%, 5-years) Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. Enter the debit accounts in alphabetical order as applicable. Enter all credit accounts in alphabetical order as applicable. The bonds are issued at a: Discount Discount or premium amount: $ Date Account Title and Explanation Debit Credit Aug 8 Cash Discount on Bonds Payable Bonds Payable Issue of bonds at discount or premium Aidan's Inc. is looking to replace its old delivery truck, which constantly breaks down. It just happens that one its suppliers has a slightly used delivery truck for sale. Because Aidan's Inc. has been doing business with this supplier for many years, the supplier offers Aidan's a great deal. The supplier will sell the truck to Aidan's for $67,000 on January 1, 2020, and issue a 5-year installment note payable at 4% interest. Installment payments of $7,459 are made semi-annually. Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole dollar. Prepare a table to calculate the total interest paid over the life of the note. Note: Due to rounding, make the reduction of the principal in the last payment equal to the remaining principal balance. This will ensure the ending principal balance is $0. Date Cash Payment Interest Expense Reduction of Principal Principal Balance Jun 30, 2020 7459 1340 J. 6119 60881 Jan 1 2021 7459 Jun 30, 2021 7459 Jan 1 2022 7459 Jun 30, 2022 7459 Jan 1 2023 7459 Jun 30, 20237459 Jan 1 2024 7459 Jun 30, 2024 7459 Dec 31, 2024 7459