On January 1, 2018, Aaron Incorporated issued $1,560,000 par value, 3%, 7-year bonds (i.e., there were 1,560 of $1,000 par value bonds in the issue). Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1. Determine the issue price of the bonds based on a 4% market rate of interest. Prepare the amortization table for the first 2 years assuming that Aaron uses the effective interest rate method. Determine the issue price of the bonds. (Use the present value and future value table calculations. If using present and future value tables or the formula method, use fact the nearest whole dollar.) The issue price of the bonds is $

On January 1, 2018, Aaron Incorporated issued $1,560,000 par value, 3%, 7-year bonds (i.e., there were 1,560 of $1,000 par value bonds in the issue). Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1. Determine the issue price of the bonds based on a 4% market rate of interest. Prepare the amortization table for the first 2 years assuming that Aaron uses the effective interest rate method. Determine the issue price of the bonds. (Use the present value and future value table calculations. If using present and future value tables or the formula method, use fact the nearest whole dollar.) The issue price of the bonds is $

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 7C

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