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Christmas Anytime Issues $700,000 of 5% bonds, due in 15 years, with Interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when: 3. The market Interest rate Is 4% and the bonds issue at a premium. (FV of $1. PV of $1. FVA of $1. and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round Interest rate factors. Round your answers to nearest whole dollar.) Issue price

Christmas Anytime Issues $700,000 of 5% bonds, due in 15 years, with Interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when: 3. The market Interest rate Is 4% and the bonds issue at a premium. (FV of $1. PV of $1. FVA of $1. and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round Interest rate factors. Round your answers to nearest whole dollar.) Issue price

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Christmas Anytime Issues $700,000 of 5% bonds, due in 15 years, with Interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when: 3. The market Interest rate Is 4% and the bonds issue at a premium. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round Interest rate factors. Round your answers to nearest whole dollar.) Issue price Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 01/01/2021 06/30/2021 $ 17,500 12/31/2021 17,500
Transcribed Image Text:Christmas Anytime Issues $700,000 of 5% bonds, due in 15 years, with Interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when: 3. The market Interest rate Is 4% and the bonds issue at a premium. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round Interest rate factors. Round your answers to nearest whole dollar.) Issue price Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 01/01/2021 06/30/2021 $ 17,500 12/31/2021 17,500
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