$100,000 Face Value, 8% coupon, four-year bond issued December 31, 2021 for a price of 107.020. Market rate interest at the time is 6%. Interest paid semiannually 6/30 and 12/31. Date Account DR CR 31-Dec Cash Correct $107,020 Correct Premium on Bonds Payable Correct Incorrect Bond Payable Correct $100,000 Correct
$100,000 Face Value, 8% coupon, four-year bond issued December 31, 2021 for a price of 107.020. Market rate interest at the time is 6%. Interest paid semiannually 6/30 and 12/31. Date Account DR CR 31-Dec Cash Correct $107,020 Correct Premium on Bonds Payable Correct Incorrect Bond Payable Correct $100,000 Correct
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter22: Corporations: Bonds
Section: Chapter Questions
Problem 3MC
Related questions
Question
$100,000 Face Value, 8% coupon, four-year bond issued December 31, 2021 for a price of 107.020. Market rate interest at the time is 6%. Interest paid semiannually 6/30 and 12/31. | ||||||
Date | Account | DR | CR | |||
31-Dec | Cash | Correct | $107,020 | Correct | ||
Premium on Bonds Payable | Correct | Incorrect | ||||
Bond Payable | Correct | $100,000 | Correct |
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