TB PR Qu. 9-225 (Static) Astro World Issues $20 million In bonds on... Astro World issues $20 million in bonds on January 1, 2024 that pay interest semiannually on June 30 and December 31. A portion of the bond amortization schedule appears below: (1) Date (2) Cash Paid (3) Interest Expense 1/1/2024 6/30/2024 12/31/2024 600,000 600,000 625,257 626,141 (4) Increase in Carrying Value 25,257 26,141 (5) Carrying Value $ 17,864,493 17,889,750 17,915,891 Required: 1. Were the bonds issued at face amount, a discount, or a premium? 2. What is the original issue price of the bonds? (Enter your answer in dollars, not millions. (l.e., $5.5 million should be entered as 5,500,000)) 3. What is the face amount of the bonds? (Enter your answer in dollars, not millions. (l.e., $5.5 million should be entered as 5,500,000)) 4. What is the stated annual interest rate? 5. What is the market annual interest rate? 6. What is the total cash paid for interest assuming the bonds mature in 20 years? (Enter your answer in dollars, not millions. (l.e., $5.5 million should be entered as 5,500,000))

TB PR Qu. 9-225 (Static) Astro World Issues $20 million In bonds on... Astro World issues $20 million in bonds on January 1, 2024 that pay interest semiannually on June 30 and December 31. A portion of the bond amortization schedule appears below: (1) Date (2) Cash Paid (3) Interest Expense 1/1/2024 6/30/2024 12/31/2024 600,000 600,000 625,257 626,141 (4) Increase in Carrying Value 25,257 26,141 (5) Carrying Value $ 17,864,493 17,889,750 17,915,891 Required: 1. Were the bonds issued at face amount, a discount, or a premium? 2. What is the original issue price of the bonds? (Enter your answer in dollars, not millions. (l.e., $5.5 million should be entered as 5,500,000)) 3. What is the face amount of the bonds? (Enter your answer in dollars, not millions. (l.e., $5.5 million should be entered as 5,500,000)) 4. What is the stated annual interest rate? 5. What is the market annual interest rate? 6. What is the total cash paid for interest assuming the bonds mature in 20 years? (Enter your answer in dollars, not millions. (l.e., $5.5 million should be entered as 5,500,000))

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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