Bond Premium and Discount

Markway Inc. is contemplating selling bonds. The issue is to be composed of 750 bonds, each with a face amount of $1000.

Exercise 9-67 (Algorithmic) Bond Premium and Discount Markway Inc. is contemplating selling bonds. The issue is to be composed of 750 bonds, each with a face amount of $1000. Required: 1. Calculate how much Markway is able to borrow if each bond is sold at a premium of $30. 2. Calculate how much Markway is able to borrow if each bond is sold at a discount of $10. 742,500 V 3. Calculate how much Markway is able to borrow if each bond is sold at 92% of par. 4. Calculate how much Markway is able to borrow if each bond is sold at 103% of par. 772,500 Feedback Check My Work 1& 2. Calculate the issue price for each bond then consider the total number of bonds to calculate total proceeds. 3 & 4. The par value is the same as face value. 5. Assume that the bonds are sold for $900 each. Prepare the entry to recognize the sale of the 750 bonds Cash Discount on Bonds Payable 10X 665,000 | Bonds Payable 675,000 X 6. Assume that the bonds are sold for $1,200 each. Prepare the entry to recognize the sale of the 750 bonds. Cash 90,030 X Premium on Bonds Payable V 30 X Bonds Payable 900,000 | Record issuance of bonds at premium