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On January 1, 2018, Piper Co. issued ten-year bonds with a face value of $8,000,000 and a stated interest rate of 12%, payable semiannually on June 30 and December 31. The bonds were sold to yield 14%. Calculate the issue price of the bond.

On January 1, 2018, Piper Co. issued ten-year bonds with a face value of $8,000,000 and a stated interest rate of 12%, payable semiannually on June 30 and December 31. The bonds were sold to yield 14%. Calculate the issue price of the bond.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Answer only question no.8 an dont give image based solution thnks

8. On January 1, 2018, Piper Co. issued ten-year bonds with a face value of $8,000,000 and a stated interest rate of 12%, payable semiannually on June 30 and December 31. The bonds were sold to yield 14%. Calculate the issue price of the bond. 9. Pronghorn Corporation purchases a patent from Crane Company on January 1, 2017, for $200,000. The patent has a remaining legal life of 15 years. Pronghorn feels the patent will be useful for 10 years. Prepare Pronghorn's journal entries to record the purchase of the patent and 2017 amortization. Purchase Amort Accounts DR CR
Transcribed Image Text:8. On January 1, 2018, Piper Co. issued ten-year bonds with a face value of $8,000,000 and a stated interest rate of 12%, payable semiannually on June 30 and December 31. The bonds were sold to yield 14%. Calculate the issue price of the bond. 9. Pronghorn Corporation purchases a patent from Crane Company on January 1, 2017, for $200,000. The patent has a remaining legal life of 15 years. Pronghorn feels the patent will be useful for 10 years. Prepare Pronghorn's journal entries to record the purchase of the patent and 2017 amortization. Purchase Amort Accounts DR CR
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