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accounting question: PV and issue price need help on 1,2,4 and have correct answer for 3 Required information The following information applies to the questions
accounting question: PV and issue price need help on 1,2,4 and have correct answer for 3
Required information The following information applies to the questions displayed below) Cron Corporation is planning to issue bonds with a face value of $890,000 and a coupon rate of 13 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Cron uses the effective interest amortization method. Assume an annual market rate of interest of 12 percent FV of $1. PV of $1. FVA of $1 and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Required: 1. What was the issue price on January 1 of this year ? (Round your final answers to nearest whole dollar amount.) Prey Next > 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.) June 30 December 31 Interest expense 3. What amount of cash should be paid to investors June 30 and December 31 of this year? Answer is complete and correct. June 30 December 31 57.850 57.850 Cash paid 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 Step by Step Solution
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