On April 1, 2000, a $150, 000, ten-year, 12% bond was sold to yield 14 plus accrued interest. The bond was dated January 1, 2000, and interest is paid each January i and July 1. Present value data follow: PV of $1 10 periods 6% 0.558395 78 0.508349 12% 0.321973 14% 0.269744 20 periods 0.311805 0.258419 0.148644 0.103667 PV of an Annuity 10 periods 7.360087 7.023582 5.650223 5.216116 20 periods 11.469921 10.594014 7.469444 6.623131 Required: 1. Compute the amount of cash received from the sale of the bond. 2. Prepare the journal entry to record the sale.
On April 1, 2000, a $150, 000, ten-year, 12% bond was sold to yield 14 plus accrued interest. The bond was dated January 1, 2000, and interest is paid each January i and July 1. Present value data follow: PV of $1 10 periods 6% 0.558395 78 0.508349 12% 0.321973 14% 0.269744 20 periods 0.311805 0.258419 0.148644 0.103667 PV of an Annuity 10 periods 7.360087 7.023582 5.650223 5.216116 20 periods 11.469921 10.594014 7.469444 6.623131 Required: 1. Compute the amount of cash received from the sale of the bond. 2. Prepare the journal entry to record the sale.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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am. 101.
Transcribed Image Text:On April 1, 2000, a $150,000, ten-year, 12% bond was sold to yield 14% plus
accrued interest. The bond was dated January 1, 2000, and interest is paid each
January 1 and July 1. Present value data follow:
PV of
10 periods
$1
20 periods
PV of an Annuity
10 periods
20 periods
11.469921
6%
0.558395
7%
0.508349
12%
0.321973
14 %
0.269744
0.311805
0.258419
0.148644
0.103667
7.360087
7.023582
5.650223
5.216116
10.594014
7.469444
6.623131
Required:
1.
2.
Compute the amount of cash received from the sale of the bond.
Prepare the journal entry to record the sale."
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