Q: 4 Vaughn Company issues $24900000, 7%, 5-year bonds dated January 1, 2020 on January 1, 2020. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 6%. What are the proceeds from the bond issue? ff 3.0% 3.5% 6% 7% Present value of a single sum for 5 periods 0.86261 0.84197 0.74726 0.71299 Present value of a single sum for 10 periods 0.74409 0.70892 0.55839 0.50835 Present value of an annuity for 5 periods 4.57971 4.51505 4.21236 4.10020 Present value of an annuity for 10 periods 8.53020 8.31661 7.36009 7.02358 $24900000 $25954405 $25961910 $25950335

Q: 5 On January 2, 2020, a calendar-year corporation sold 8% bonds with a face value of $3030000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $2796000 to yield 10%. Using the effective-interest method of computing interest, how much should be charged to interest expense in 2020?

$242400.

$280530.

$279600.

$303000.

Q: 6 On October 1, 2020 Crane Company issued 5%, 10-year bonds with a face value of $6050000 at 106. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. The entry to record the issuance of the bonds would include a credit of

$151250 to Interest Payable.

$363000 to Premium on Bonds Payable.

$363000 to Discount on Bonds Payable.

$5687000 to Bonds Payable.