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Determining Bond Features Rowe Corporation authorized $5,000 of 8% (cash interest payable semiannually) 10-year bonds. The bonds were dated January 1, 2020; interest dates are
Determining Bond Features Rowe Corporation authorized $5,000 of 8% (cash interest payable semiannually) 10-year bonds. The bonds were dated January 1, 2020; interest dates are June 30 and December 31. Assume three different cases with respect to the sale of the bonds: Case A: Bonds sold on January 1, 2020, at par Case B: Bonds sold on January 1, 2020, at 98 Case C: Bonds sold on February 1, 2020, at 102 Complete the following schedule. CASE A ace value of bonds $ emiannual interest payment $ ond selling price (excluding accrued interest) $ ond issue date Jan. 1, 2020 CASE B CASE C 50,000 * $ 50,000 * $ 2,000 * $ 2,000 x $ 50,000 x $ 49,000 x $ Jan. 1, 2020 Feb. 1, 2020 50,000 x 2,000 * 51,000 x
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