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Reporting Bonds Issued at a Discount Required information P10-6 (Static) Recording and Reporting Bonds Issued at a Discount LO10-4 [The following information applies to the

Reporting Bonds Issued at a Discount
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Required information P10-6 (Static) Recording and Reporting Bonds Issued at a Discount LO10-4 [The following information applies to the questions displayed below] PowerTap Utilities is planning to issue bonds with a face value of $1,000,000 and a coupon rate of 10 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. PowerTap uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent. (FV of \$1. PV of S1, EVA of S1, and PVA of \$1) (Use the appropriate factor(s) from the tables provided.) P10-6 Part 1 Required: 1. What wos the issue price on January 1 of this year? (Round your final answers to nearest whole dollar amount.) Required information P10-6 (Static) Recording and Reporting Bonds Issued at a Discount LO10-4 [The following information applies to the questions displayed below] PowerTap Utilities is planning to issue bonds with a face value of $1,000,000 and a coupon rate of 10 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31 . All of the bonds were sold on January 1 of this year. PowerTap uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent. (FV of \$1, PV of \$1. EVA of \$1, and PVA of \$1) (Use the appropriate factor(s) from the tables provided.) P10-6 Part 2 2. What amount of interest expense should be recorded on June 30 and December 31 of this year? (Round your final answers to nearest whole dollar amount.) Answer is complete but not entirely correct. Required information P10-6 (Static) Recording and Reporting Bonds Issued at a Discount LO10-4 [The following information applies to the questions displayed below]. PowerTap Utilities is planning to issue bonds with a face value of $1,000,000 and a coupon rate of 10 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31 . All of the bonds were sold on January 1 of this year. PowerTap uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent. (EV of \$1. PV of \$1. FVA of \$1, and PVA of \$1) (Use the appropriate factor(s) from the tables provided.) P10-6 Part 4 4. What is the book value of the bonds on June 30 and December 31 of this year? (Round your final answers to nearest whole dollar amount.) Answer is complete but not entirely correct

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