P10-9 (Static) Recording and Reporting Bonds Issued at a Premium LO10-5 [The following information applies to the questions displayed below] Cron Corporation is planning to issue bonds with a face value of $700,000 and a coupon rate of 13 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Cron uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent. (FV of $1. PV of $1. FVA of $1. and PVA of $1) (Use the appropriate factor(s) from the tables provided.) P10-9 Part 1 Required: 1. What was the issue price on January 1 of this year? (Round your final answers to nearest whole dollar amount.) Issue price
P10-9 (Static) Recording and Reporting Bonds Issued at a Premium LO10-5 [The following information applies to the questions displayed below] Cron Corporation is planning to issue bonds with a face value of $700,000 and a coupon rate of 13 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Cron uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent. (FV of $1. PV of $1. FVA of $1. and PVA of $1) (Use the appropriate factor(s) from the tables provided.) P10-9 Part 1 Required: 1. What was the issue price on January 1 of this year? (Round your final answers to nearest whole dollar amount.) Issue price
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: accounting
![Required information.
P10-9 (Static) Recording and Reporting Bonds Issued at a Premium LO10-5
[The following information applies to the questions displayed below.]
Cron Corporation is planning to issue bonds with a face value of $700,000 and a coupon rate of 13 percent. The bonds
mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January
1 of this year. Cron uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent.
(FV of $1. PV of $1, EVA of $1. and PVA of $1) (Use the appropriate factor(s) from the tables provided.)
P10-9 Part 1
Required:
1. What was the issue price on January 1 of this year? (Round your final answers to nearest whole dollar amount.)
Issue price](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fc66754-dc05-453a-a4c8-c79196bcb5d1%2F1442ce24-f213-44e6-bbab-ea5cbcb04fbf%2F3nlhtne_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information.
P10-9 (Static) Recording and Reporting Bonds Issued at a Premium LO10-5
[The following information applies to the questions displayed below.]
Cron Corporation is planning to issue bonds with a face value of $700,000 and a coupon rate of 13 percent. The bonds
mature in five years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January
1 of this year. Cron uses the effective-interest amortization method. Assume an annual market rate of interest of 12 percent.
(FV of $1. PV of $1, EVA of $1. and PVA of $1) (Use the appropriate factor(s) from the tables provided.)
P10-9 Part 1
Required:
1. What was the issue price on January 1 of this year? (Round your final answers to nearest whole dollar amount.)
Issue price
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