On May 1, 2013, Ezzy Company issued a 6-year bond worth $400,000 with an interest rate of 8% per annum. Interest is to be paid semi-annually on October 31 and April 30. At the time of the issuance, the market interest rate was 6%. Ezzy Company amortizes any premium or discount using the straight-line method.

Calculate the bond issue price and the resulting premium or discount.

On May 1, 2013, Ezzy Company issued a 6year bond w0Ith $400,000 with an interest rate of 8% per annum. Interest is to be paid semi-annually on October 31 and April 30. At the time of the issuance, the market interest rate was 6%. Ezzy Company amortizes any premium or discount using the straightline method. Calculate the bond issue price and the resulting premium or discount. Do not enter dollar signs or commas in the input boxes. Round your answers to 2 decimal places. Use the present value tables in the textbook. Bond issue price: $ Premium or discount: 35 On May 1 2013, Ezzy Company issued a 6-year bond worth $400,000 with an interest rate of 8% per annum. Interest is to be paid semiannually on October 31 and April 30. At the time of the issuance, the market interest rate was 6%. Ezzy Company amortizes any premium or discount using the straight-line method. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole number. Use the present value tables in the textbook. For transactions with more than one debit or credit, enter the accounts in alphabetical order. a) Prepare the journal entry on May 1, 2013, to issue the bonds. May 1 v b) Redemption of the bond at fair value on May 1, 2018 (1 year before maturity). May 1 v