am. 101. On April 1, 2000, a $150,000, ten-year, 12% bond was sold to yield 14% plusaccrued interest. The bond was dated January 1, 2000, and interest is paid eachJanuary 1 and July 1. Present value data follow:PV of10 periods$120 periodsPV of an Annuity10 periods20 periods11.4699216%0.5583957%0.50834912%0.32197314 %0.2697440.3118050.2584190.1486440.1036677.3600877.0235825.6502235.21611610.5940147.4694446.623131Required:1.2.Compute the amount of cash received from the sale of the bond.Prepare the journal entry to record the sale."

Issue price of the bonds = Present value of principal + Present value of interest paymentswhere,…

On April 1, 2000, a $150, 000, ten-year, 12% bond was sold to yield 14 plus accrued interest. The bond was dated January 1, 2000, and interest is paid each January i and July 1. Present value data follow: PV of $1 10 periods 6% 0.558395 78 0.508349 12% 0.321973 14% 0.269744 20 periods 0.311805 0.258419 0.148644 0.103667 PV of an Annuity 10 periods 7.360087 7.023582 5.650223 5.216116 20 periods 11.469921 10.594014 7.469444 6.623131 Required: 1. Compute the amount of cash received from the sale of the bond. 2. Prepare the journal entry to record the sale.

On April 1, 2000, a $150, 000, ten-year, 12% bond was sold to yield 14 plus accrued interest. The bond was dated January 1, 2000, and interest is paid each January i and July 1. Present value data follow: PV of $1 10 periods 6% 0.558395 78 0.508349 12% 0.321973 14% 0.269744 20 periods 0.311805 0.258419 0.148644 0.103667 PV of an Annuity 10 periods 7.360087 7.023582 5.650223 5.216116 20 periods 11.469921 10.594014 7.469444 6.623131 Required: 1. Compute the amount of cash received from the sale of the bond. 2. Prepare the journal entry to record the sale.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2PB: Charleston Inc. issued $200,000 bonds with a stated rate of 10%. The bonds had a 10-year maturity...

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