Cansat, a Crown corporation owned by the government, issued bonds to finance the construction of the next generation of observation satellites. On January 1, 2020, Cansat issued 7%, 15-year bonds with a face value of $236,000,000. The bonds will pay interest semi-annually on June 30 and December 31.

Correct answer iconYour answer is correct.

Calculate the amount of cash Cansat will receive if the bonds are sold under each of the following bond alternatives:

i.	7% (issued at par)
ii.	a price of 95.542 to yield 7.5%
iii.	a premium in the amount of $11,210,000 and first interest expense of $8,034,325

	Cash Received
i.	$Enter a dollar amount.
ii.	$Enter a dollar amount.
iii.	$Enter a dollar amount.

eTextbook and Media

List of Accounts

Question Part Score

10/10

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Prepare the journal entry Cansat would record at the time of the issuance of the bonds under each of the alternatives. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.	Account Titles and Explanation	Debit	Credit
i.	Enter an account title.	Enter a debit amount.	Enter a credit amount.
	Enter an account title.	Enter a debit amount.	Enter a credit amount.
ii.	Enter an account title.	Enter a debit amount.	Enter a credit amount.
	Enter an account title.	Enter a debit amount.	Enter a credit amount.
iii.	Enter an account title.	Enter a debit amount.	Enter a credit amount.
	Enter an account title.	Enter a debit amount.	Enter a credit amount.

eTextbook and Media

List of Accounts

Question Part Score

17.78/40

Partially correct answer iconYour answer is partially correct.

Prepare the journal entries to record the first interest expense for the alternatives (i), (ii), and (iii) above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.	Account Titles and Explanation	Debit	Credit
i.	Enter an account title.	Enter a debit amount.	Enter a credit amount.
	Enter an account title.	Enter a debit amount.	Enter a credit amount.
ii.	Enter an account title.	Enter a debit amount.	Enter a credit amount.
	Enter an account title.	Enter a debit amount.	Enter a credit amount.
	Enter an account title.	Enter a debit amount.	Enter a credit amount.
iii.	Enter an account title.	Enter a debit amount.	Enter a credit amount.
	Enter an account title.	Enter a debit amount.	Enter a credit amount.
	Enter an account title.	Enter a debit amount.	Enter a credit amount.

Question Part Score

33.33/50

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