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Santa Corporation issued a bond on January 1 of this year with a face value of $1,000. The bonds coupon rate is 6 percent and
Santa Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond"s coupon rate is 6 percent and interest is paid once a year on December 31 . The bond matures in three years. The annual market rate of interest was 8 percent ar the time the bond was sold. The following amortization schedule pertains to the bond issued: 1. What was the bond's issue price? 2. Did the bond sell at a discount or a premium? How much was the premium or discount? 3. What amount(g) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2 ? 4. Show how the following amounts were computed for Year 2 (a) $60, (d) $77,10 ) $77, and (a) $981 Complete this question by entering your answers in the tabs below. 3. What was the bonds inus pricin? 2. Did the bond sell at a discount or a premium? How much was the premium of discoun? 3. What amount(s) should be stower on the batance sheet for bonds payable at the end of Year 1 and Year 2
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