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E 1 0 - 1 3 ( Algo ) Recording and Reporting a Bond Issued at a Premium ( with Premium Account ) LO 1
EAlgo Recording and Reporting a Bond Issued at a Premium with Premium Account LO
Park Corporation is planning to issue bonds with a face value of $ and a coupon rate of percent. The bonds mature in years and pay interest semiannually every June and December All of the bonds were sold on January of this year. Park uses the effectiveinterest amortization method and also uses a premium account. Assume an annual market rate of interest of percent. FV of $ PV of $ FVA of $ and PVA of $
Note: Use appropriate factors from the tables provided.
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and Prepare the journal entry to record the issuance of the bonds and the interest payment on June of this year
What bonds payable amount will Park report on its June balance sheet?What bonds payable amount will Park report on its June balance sheet?
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Prepare the journal entry to record the issuance of the bonds and the interest payment on June of this year.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field. Round your
intermediate calculations and final answers to whole dollars.
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