On January 1, 2020, Edison Co. issued eight-year bonds with a face value of P 2,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to vield 8%. Table values are Present value of 1 for 8 periods at 6% . Present value of 1 for 8 periods at 8% . .627 .540 Present value of 1 for 16 periods at 3%. .623 Present value of 1 for 16 periods at 4% . .534 Present value of annuity for 8 periods at 6%. . 6.210 Present value of annuity for 8 periods at 8%.. 5.747 Present value of annuity for 16 periods at 3%.. 12.561 Present value of annuity for 16 periods at 4% 11.652

On January 1, 2020, Edison Co. issued eight-year bonds with a face value of P 2,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to vield 8%. Table values are Present value of 1 for 8 periods at 6% . Present value of 1 for 8 periods at 8% . .627 .540 Present value of 1 for 16 periods at 3%. .623 Present value of 1 for 16 periods at 4% . .534 Present value of annuity for 8 periods at 6%. . 6.210 Present value of annuity for 8 periods at 8%.. 5.747 Present value of annuity for 16 periods at 3%.. 12.561 Present value of annuity for 16 periods at 4% 11.652

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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