Question
On January 1, 2020, Ellison Co. issued eight-year bonds with a face value of $1,000,000 and a stated interest rate of 6%, payable semiannually on
On January 1, 2020, Ellison Co. issued eight-year bonds with a face value of $1,000,000 and a
stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were
sold to yield 8%. Table values are:
Present value of 1 for 8 periods at 6%.......................................... .627
Present value of 1 for 8 periods at 8%.......................................... .540
Present value of 1 for 16 periods at 3%........................................ .623
Present value of 1 for 16 periods at 4%........................................ .534
Present value of annuity for 8 periods at 6%................................ 6.210
Present value of annuity for 8 periods at 8%................................ 5.747
Present value of annuity for 16 periods at 3%.............................. 12.561
Present value of annuity for 16 periods at 4%.............................. 11.652
1. The present value of the principal is
2. The present value of the interest is
3. The issue price of the bonds is
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Governmental And Nonprofit Accounting Theory And Practice
Authors: Robert J Freeman, Craig D Shoulders, Gregory S Allison, Terry K Patton, Robert Smith,
9th Edition
0132552728, 9780132552721
