Cron Corporation is planning to issue bonds with a face value of $870,000 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.

_ ( G i G) ezto.mheducation.com1hm.tpx 'l1me remaining: 0:24:50 [The folio Mng infomebn applies to the questions displayed below] Cron Corporation is planning to issue bonds with a face value of $370,000 and a coupon rate of 13 percent. The bonds mature in ve years and pay interest semiannuaily everyJune 30 and December 31. All ofthe bonds were said an January1 of this year. Cmn uses the effectiveinterest amortization method. Assume an annual market rate of interest of 12 percent. FV of 31. W of $1. FVA of $1, and WA of $1) (Use the appropriate facturts] from me tables provided.) 3 _ vsiue' l 12.50 points Requ red summation Required: 1. What was the issue price on January 1 of this year ?[Round your nal answers to nearest whole dollar amount.) Reterenoee eBook 5. Resources Worksheet Difculty: 2 Medium Learning Objective: 10-05 Report bondI payable and interest expenIe for bond securities iIIued at a premium. Check my work 4 vaiue: ' 12.50 points Required Womeon ( ' C l G) ezto.mheducetion.com,thm.tpx it I Q a 5 References 33ml: 8. Resources Worksheet Difculty: 2 Medium Leamlnp Objective: 1045 Report bonds payable and Interest expense for bond securities issued at a premium. Check my work value: 4' 12.50 points Mulred \"urination 2. What amount of interest expense should be recorded on June 30 and Deoember 31 0! this year? (Rou rid your llnal answers to nearest whole dollar amount.) Imam- m Relerenoee eBook a. Resources Work-heel: Diiculty: 2 Medium Leemlng Objective: 10-05 Report bonds payable and interest expense for bond sewriliee issued at a premium. Check my work value: I 5_ 12.50 points Requ red hronnauon ( ' G i G) eztomheducstioncbmfhmtpx it I a a 3) 5 References eBouk a. Resource: Worluheet Diicuity: 2 Medium Learning Objective: 10-05 Report bonds payable and interest expense for bond securilies Issued et a premium. Check my work value' I 6_ 1250 Wm: nequ red h'ormaon 4. What is the book value 0! the bonds on June 30 and December 31 dill-Ila year:| (Round your nal snewere to nearest whole dollar amount.) Bonds payable 5 899.583 3 899.583 Relerenoee eBook 5. Resources Work-heel: Difculty: 2 Medium Learning Objective: 10-05 Report bonds payable and irrlerest expense for bond securilies issued at a premium. Check my work