PNW company issues 6% 5-year bonds with a total face amount of $1,000,000 with interest paid semi-annually. The market rate ofinterest is 6.1%.PVPVA56.00%0.747264.212456.10%0.743744.2009103.00%0.744098.5302103.05%0.740498.50851What is the issue price of the bond?Record the issuance of the bond.DebitCreditWhat was the amount of the premium or discount?3What is the interest expense for the first interest payment?4What is the bond liability after the first interest payment?5What is the interest expense for the second interest payment?

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PNW company issues 6% 5-year bonds with a total face amount of $1,000,000 with interest paid semi-annually. The market rate of interest is 6.1%. n % PV PVA 5 6.00% 0.74726 4.2124 6.10% 3.00% 3.05% 0.74374 4.2009 10 0.74409 8.5302 10 0.74049 8.5085 1 What is the issue price of the bond? 2 Record the issuance of the bond. Debit Credit

PNW company issues 6% 5-year bonds with a total face amount of $1,000,000 with interest paid semi-annually. The market rate of interest is 6.1%. n % PV PVA 5 6.00% 0.74726 4.2124 6.10% 3.00% 3.05% 0.74374 4.2009 10 0.74409 8.5302 10 0.74049 8.5085 1 What is the issue price of the bond? 2 Record the issuance of the bond. Debit Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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