Queen Energy Inc. Issued bonds on January 1, 2023, that pay interest semiannually on June 30 and December 31. The par value of the bonds is $340,000, the annual contract rate is 12%, and the bonds mature in 10 years. (Use IABLE 14A1 and IABLE 14A.2) (Use appropriate factor(s) from the tables provided.) Required: a. For each of these three situations, determine the issue price of the bonds. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) (1) (2) (3) Market rate Issue Price of the interest Bonds 10% 12% 14% b. For each of these three situations, prepare the journal entry that would record the issuance, assuming the market interest rate at the date of issuance was (1) 10%, (2) 12%, (3) 14 %. (Use PV tables in determining the issue price of the bonds. Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)

Queen Energy Inc. Issued bonds on January 1, 2023, that pay interest semiannually on June 30 and December 31. The par value of the bonds is $340,000, the annual contract rate is 12%, and the bonds mature in 10 years. (Use IABLE 14A1 and IABLE 14A.2) (Use appropriate factor(s) from the tables provided.) Required: a. For each of these three situations, determine the issue price of the bonds. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) (1) (2) (3) Market rate Issue Price of the interest Bonds 10% 12% 14% b. For each of these three situations, prepare the journal entry that would record the issuance, assuming the market interest rate at the date of issuance was (1) 10%, (2) 12%, (3) 14 %. (Use PV tables in determining the issue price of the bonds. Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)

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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