Markway Inc. is contemplating selling bonds. The issue is to be composed of 750 bonds, each with a face amount of $800. Required: 1. Calculate how much Markway is able to borrow if each bond is sold at a premium of $30. $fill in the blank 23f1fdf81fe3f91_1 2. Calculate how much Markway is able to borrow if each bond is sold at a discount of $10. $fill in the blank 23f1fdf81fe3f91_2 3. Calculate how much Markway is able to borrow if each bond is sold at 92% of par. $fill in the blank 23f1fdf81fe3f91_3
Markway Inc. is contemplating selling bonds. The issue is to be composed of 750 bonds, each with a face amount of $800.
Required:
1. Calculate how much Markway is able to borrow if each bond is sold at a premium of $30.
$fill in the blank 23f1fdf81fe3f91_1
2. Calculate how much Markway is able to borrow if each bond is sold at a discount of $10.
$fill in the blank 23f1fdf81fe3f91_2
3. Calculate how much Markway is able to borrow if each bond is sold at 92% of par.
$fill in the blank 23f1fdf81fe3f91_3
4. Calculate how much Markway is able to borrow if each bond is sold at 103% of par.
$fill in the blank 23f1fdf81fe3f91_4
5. Assume that the bonds are sold for $625 each. Prepare the entry to recognize the sale of the 750 bonds.
| Cash | fill in the blank 2552a6f29fa5030_2 | fill in the blank 2552a6f29fa5030_3 | |
| Discount on Bonds Payable | fill in the blank 2552a6f29fa5030_5 | fill in the blank 2552a6f29fa5030_6 | |
| Bonds Payable | fill in the blank 2552a6f29fa5030_8 | fill in the blank 2552a6f29fa5030_9 | |
| Record issuance of bonds at discount |
6. Assume that the bonds are sold for $900 each. Prepare the entry to recognize the sale of the 750 bonds.
| Cash | fill in the blank 1d87ca07df94044_2 | fill in the blank 1d87ca07df94044_3 | |
| Premium on Bonds Payable | fill in the blank 1d87ca07df94044_5 | fill in the blank 1d87ca07df94044_6 | |
| Bonds Payable | fill in the blank 1d87ca07df94044_8 | fill in the blank 1d87ca07df94044_9 | |
| Record issuance of bonds at premium |
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