On April 1, 2023, ET Inc. has available for issue $299,000 bonds due in four years. Interest at the rate of 3.5% is to be paid quarterly Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) Market Interest Issue Price of the Bonds Rate a. 4.5% b. 3.5% C. 2.5% Part 2 On October 1, ET Inc. has available for issue a $334,000 bond due in eight years. Interest at the rate of 3.5% is to be paid semiannually. Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Market Interest Issue Price of the Rate Bonds a. 2.5% b. 3.5% C. 4 25%

On April 1, 2023, ET Inc. has available for issue $299,000 bonds due in four years. Interest at the rate of 3.5% is to be paid quarterly Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) Market Interest Issue Price of the Bonds Rate a. 4.5% b. 3.5% C. 2.5% Part 2 On October 1, ET Inc. has available for issue a $334,000 bond due in eight years. Interest at the rate of 3.5% is to be paid semiannually. Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Market Interest Issue Price of the Rate Bonds a. 2.5% b. 3.5% C. 4 25%

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000
Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium
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Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $540,000. Interest is payable annually. The premium is amortized using the straightline method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of premium D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of premium
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Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable annually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of discount D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of discount
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$60,000, 5-year bonds, with a 10% stated rate of interest are issued at $55,584 on January 1, 2021. Interest payments are made semi-annually on June 30 and December 31. How much interest expense would be recognized on the first interest payment date? Assume straight-line amortization is used. Round your answer to the nearest dollar.