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Required information [The following information applies to the questions displayed below.) PowerTap Utilities is planning to issue bonds with a face value of $2,600,000 and

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Required information [The following information applies to the questions displayed below.) PowerTap Utilities is planning to issue bonds with a face value of $2,600,000 and a coupon rate of 9 percent. The bonds mature in 9 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 10 percent. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) 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.) June 30 December 31 Interest expense Required information [The following information applies to the questions displayed below.) PowerTap Utilities is planning to issue bonds with a face value of $2,600,000 and a coupon rate of 9 percent. The bonds mature in 9 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 10 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 amount of cash should be paid to investors June 30 and December 31 of this year? June 30 December 31 Cash paid Required information [The following information applies to the questions displayed below.) PowerTap Utilities is planning to issue bonds with a face value of $2,600,000 and a coupon rate of 9 percent. The bonds mature in 9 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 10 percent. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) 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.) June 30 December 31 Bonds payable

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