Question
On January 1, 2019 Jordan Inc. issued a $450,000 par value, 8% 6-year bond with interest due semiannually on June 30 and December 31. At
On January 1, 2019 Jordan Inc. issued a $450,000 par value, 8% 6-year bond with interest due semiannually on June 30 and December 31. At the time of issuance, the market rate of interest for bonds with similar risk was 6%.
A) Was this bond issued at a discount, premium, or at par?
B) On January 1, 2025 Jordan will repay the principal amount associated with this bond. Assuming this is the only transaction Jordan incurs during the fiscal 2025 year, how will this transaction be reported on Jordan's statement of cash flows (Please respond with the cash inflow/outflow associated with each section of the statement of cash flows)?
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