Question
On July 1, 2015 , Apple Company issued $4,000,000, 5-year, 12% bonds for $4,308,858 when the market rate was 10%. The bonds pay interest semiannually
On July 1, 2015, Apple Company issued $4,000,000, 5-year, 12% bonds for $4,308,858 when the market rate was 10%. The bonds pay interest semiannually on June 30 and December 31 (a) The face value of the bond (b) The proceeds (cash received) from the bond
(c) The discount or premium on the bond (indicate $ amount and if it is a discount or a premium)
(d) The amount of discount/premium amortized (on a straight-line basis) at each interest payment date is (round to the nearest dollar):
(e) The amount of interest paid to the bondholder on a semiannual basis
(f) The amount of interest expense recorded on a semiannual basis
(b) The proceeds (cash received) from the bond
(c) The discount or premium on the bond (indicate $ amount and if it is a discount or a premium)
(d) The amount of discount/premium amortized (on a straight-line basis) at each interest payment date is (round to the nearest dollar):
(e) The amount of interest paid to the bondholder on a semiannual basis
(f) The amount of interest expense recorded on a semiannual basis
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
