On January 1, Aiken Company issued $700,000 par value, 10%, 5-year bonds (.e., there were 700 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. Aiken paid $10,000 in underwriting fees. Determine the issue price of the bonds with a 12% market rate of interest and prepare the journal entry to record the bond issue Future Value of $1 table Future Value of
On January 1, Aiken Company issued $700,000 par value, 10%, 5-year bonds (.e., there were 700 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. Aiken paid $10,000 in underwriting fees. Determine the issue price of the bonds with a 12% market rate of interest and prepare the journal entry to record the bond issue Future Value of $1 table Future Value of
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ch14 Q.15
The issue price of the bonds?
cash?
discound on bonds payable?
bonds payable?
Transcribed Image Text:On January 1, Aiken Company issued $700,000 par value, 10%, 5-year bonds (.e., there were 700 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. Aiken paid $10,000 in underwriting fees. Determine the issue price of the bonds with a
12% market rate of interest and prepare the journal entry to record the bond issue.
Future Value of $1 table Euture Value of an Ordinary Annuity table Future Value of an Annuity Due table
Present Value of $1 table Present Value of an Ordinary Annuity table Present Value of an Annuity Due table
GEOD
Determine the issue price of the bonds. (Use the present value and future value tables, the formula method, a
financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the
formula method, use factor amounts rounde to five decimal places, X.XXXXX Round your final answers to the
nearest whole dollar)
The issue price of the bonds=
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