9. Joba Corporation issued $1,000,000 of13% (stated rate) bonds payable on January1, 2020, due on January 1, 2028, withinterest payable each January 1. Investorsrequire an effective-interest rate (marketrate) of 10%. Calculate the amount ofdiscount or premium that will be recognizedwhen the company issues the bonds(indicate the amount and wither its discountor premium). P.V. of 1 (single sum)(n)Periods8%9%10%11%12%15%.92593.91743.90909.90090.89286.869571.85734.84168.82645.81162.79719.75614.77218.70843.73119.65873.59345.79383.75132.71178.657523.73503.68301.63552.571754.68058.64993.62092.56743.49718.63017.58349.59627.56447.53464.50663.432336..54703.51316.48166.45235375947.50187.46043.54027.46651.43393.40388.32690.50025.42410.39092.36061.28426.46319.42241.38554.35218.32197.2471910P.V. of annuity(n)Periods8%9%10%11%12%15%.92593.91743.90909.90090.89286.8695711.783261.759111.735541.712521.690051.625712.577103.312132.531302.486852.443712.401832.2832333.239723.169863.102453.037352.8549843.992713.889653.790793.695903.604783.352164.622884.485924.355264.230544.111413.784484.712205.146125.206375.032954.868425.334934.563764.967644.160425.746645.534824.4873285.995256.417665.537055.889235.328255.650226.246895.759024.771589.6.710086.144575.0187710

Issue price of the bonds = Present value of principal + Present value of interest payments = face…

9. Joba Corporation issued $1,000,000 of 13% (stated rate) bonds payable on January 1, 2020, due on January 1, 2028, with interest payable each January 1. Investors require an effective-interest rate (market rate) of 10%. Calculate the amount of discount or premium that will be recognized when the company issues the bonds (indicate the amount and wither its discount or premium).

9. Joba Corporation issued $1,000,000 of 13% (stated rate) bonds payable on January 1, 2020, due on January 1, 2028, with interest payable each January 1. Investors require an effective-interest rate (market rate) of 10%. Calculate the amount of discount or premium that will be recognized when the company issues the bonds (indicate the amount and wither its discount or premium).

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market...

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