Question
Park Corporation is planning to issue bonds with a face value of $790,000 and a coupon rate of 7.5 percent. The bonds mature in
Park Corporation is planning to issue bonds with a face value of $790,000 and a coupon rate of 7.5 percent. The bonds mature in 6 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and does not use a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) 3. What bonds payable amount will Park report on its June 30 balance sheet? (Round your final answer to whole dollars.)
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Frank Hodge
11th Edition
1264229739, 9781264229734
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