On January 1, 2020, $200,000, 4-year,9% bonds were issued. The interest rate in effect when the bonds were issued was 8%. Interest is paid semi-annually on January 1 and July 1. Bond paid in full December 31, 2023. All answers rounded to the nearest dollar. 31) What would be the premium (discount) at which the bond was issued: a) Premium: more than $7,000 b) Premium: less than $7,000 c) Discount: more than $7,000 d) Discount: less than $7,000 e) There is not enough data to determine the premium (discount) 32) What would be the amount of premium (discount) amortized on July 1, 2020? a) $731 b) $760 c) $790 d) $821 e) None of the above 33) What would be the amount of premium (discount) amortized on January 1, 2022? a) $731 b) $760 c) $790 d) $821 e) None of the above

On January 1, 2020, $200,000, 4-year,9% bonds were issued. The interest rate in effect when the bonds were issued was 8%. Interest is paid semi-annually on January 1 and July 1. Bond paid in full December 31, 2023. All answers rounded to the nearest dollar. 31) What would be the premium (discount) at which the bond was issued: a) Premium: more than $7,000 b) Premium: less than $7,000 c) Discount: more than $7,000 d) Discount: less than $7,000 e) There is not enough data to determine the premium (discount) 32) What would be the amount of premium (discount) amortized on July 1, 2020? a) $731 b) $760 c) $790 d) $821 e) None of the above 33) What would be the amount of premium (discount) amortized on January 1, 2022? a) $731 b) $760 c) $790 d) $821 e) None of the above

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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