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On April 1, 2018, Cave Creek Golf Clubs issued $600.000 of 25 year, 6 percent bonds payable. The bonds were sold for $552,000. The bonds
On April 1, 2018, Cave Creek Golf Clubs issued $600.000 of 25 year, 6 percent bonds payable. The bonds were sold for $552,000. The bonds pay interest each September 30 and March 31, and any discount or premium is amortized using straight line amortization Read the requirement ) Requirement 1. Fill in the blanks to complete each statement a. Cave Creek Golf Clubs bonds are priced at (express the price as a percentage) 1. Fill in the blanks to complete these statements: a. Cave Creek Golf Clubs' bonds are priced at (express the price as a percentage) b. When Cave Creek Golf Clubs issued its bonds, the market interest rate was (higher than, lower than or equal to) 6 percent. C. The amount of bond discount or premium is 2. Ricord the following transactions: a. Issuance of the bonds payable on April 1, 2018 b. Payment of interest (and amortization of discount or premium, if any) on September 30, 2018 c. Accrual of interest (and amortization of discount or premium, if any) on December 31, 2018; explanations are not required 3. At what amount will Cave Creek Golf Clubs report the bonds on its balance sheet at December 31, 2018
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