Chapter 10 HW Saved 2 Part 1 of 4 4.16 points ! Required Information P10-9 (Algo) Recording and Reporting Bonds Issued at a Premium LO10-5 [The following Information applies to the questions displayed below.] Cron Corporation is planning to issue bonds with a face value of $890,000 and a coupon rate of 13 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Cron uses the effective interest amortization method. Assume an annual market rate of Interest of 12 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. eBook References P10-9 Part 1 Required: 1. What was the issue price on January 1 of this year? Note: Round your final answer to nearest whole dollar amount. Issue price
Chapter 10 HW Saved 2 Part 1 of 4 4.16 points ! Required Information P10-9 (Algo) Recording and Reporting Bonds Issued at a Premium LO10-5 [The following Information applies to the questions displayed below.] Cron Corporation is planning to issue bonds with a face value of $890,000 and a coupon rate of 13 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Cron uses the effective interest amortization method. Assume an annual market rate of Interest of 12 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. eBook References P10-9 Part 1 Required: 1. What was the issue price on January 1 of this year? Note: Round your final answer to nearest whole dollar amount. Issue price
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter10: Long-term Liabilities
Section: Chapter Questions
Problem 10.1AP
Question
![Chapter 10 HW
Saved
2
Part 1 of 4
4.16
points
!
Required Information
P10-9 (Algo) Recording and Reporting Bonds Issued at a Premium LO10-5
[The following Information applies to the questions displayed below.]
Cron Corporation is planning to issue bonds with a face value of $890,000 and a coupon rate of 13 percent. The bonds
mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January
1 of this year. Cron uses the effective interest amortization method. Assume an annual market rate of Interest of 12
percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
Note: Use appropriate factor(s) from the tables provided.
eBook
References
P10-9 Part 1
Required:
1. What was the issue price on January 1 of this year?
Note: Round your final answer to nearest whole dollar amount.
Issue price](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6ba0e587-a052-4bea-ab4d-afeecfa845fe%2F407c3961-e254-4e2d-8120-954595700321%2F5elv9qr_processed.png&w=3840&q=75)
Transcribed Image Text:Chapter 10 HW
Saved
2
Part 1 of 4
4.16
points
!
Required Information
P10-9 (Algo) Recording and Reporting Bonds Issued at a Premium LO10-5
[The following Information applies to the questions displayed below.]
Cron Corporation is planning to issue bonds with a face value of $890,000 and a coupon rate of 13 percent. The bonds
mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January
1 of this year. Cron uses the effective interest amortization method. Assume an annual market rate of Interest of 12
percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
Note: Use appropriate factor(s) from the tables provided.
eBook
References
P10-9 Part 1
Required:
1. What was the issue price on January 1 of this year?
Note: Round your final answer to nearest whole dollar amount.
Issue price
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