ACCT 210
Semester II 2022-2023
1	Allegiant issues 6%. 20 year bonds with a par value of $2,000,000 and semiannual interest
	payments. In each separate situation, determine whether the bond is issued at par value, at a
	discount, or at a premium.
						par	Discount	Premium
	1	Market rate for the bond is 5%
	2	Market rate for the bond is 6%
	3	Market rate for the bond is 7%
2	In each separate situation, show how bonds payable is reported in the long-term liabilities
	section of the December 31 balance sheet.
	1	Bonds payable with a par value of $10,000 and a premium on bonds payable of $240.
	2	Bonds payable with a par value of $30,000 and a discount on bonds payable of $500.
	(Refer to the example in the text on page 407 under the title of Discount Bonds and Premium Bonds)
	1	Liabilities Section of Balance Sheet
		December 31
	2	Liabilities Section of Balance Sheet
		December 31
3	From the following accounts create a Classified Balance sheet using the example in the handout.
	Cash					68,057
	Accumulated Depreciation - computer equipment					-25,000
	Merchandise Inventory					704
	Computer supplies					2,005
	Computer equipment					20,000
	Prepaid rent					825
	Office equipment					8,000
	Common stock					98,000
	Prepaid insurance					1,110
	Accumulated Depreciation- office Equipment					-800
	Wages payable					875
	Accounts Receivable					22,867
	Retained earnings					21,393