On April 1, 2000, a $150,000, ten-year, 12% bond was sold to yield 14% plus accrued interest. The bond was dated January 1, 2000, and interest is paid each January 1 and July 1. Present value data follow: PV of 10 periods 6% 0.558395 7% 0.508349 12% 0.321973 14% 0.269744 $1 20 periods 0.311805 0.258419 0.148644 0.103667 4400 PV of an Annuity 10 periods 7.360087 7.023582 5.650223 5.216116 20 periods 11.469921 10.594014 7.469444 6.623131 Required: 1. Compute the amount of cash received from the sale of the bond. 2. Prepare the journal entry to record the sale.

On April 1, 2000, a $150,000, ten-year, 12% bond was sold to yield 14% plus accrued interest. The bond was dated January 1, 2000, and interest is paid each January 1 and July 1. Present value data follow: PV of 10 periods 6% 0.558395 7% 0.508349 12% 0.321973 14% 0.269744 $1 20 periods 0.311805 0.258419 0.148644 0.103667 4400 PV of an Annuity 10 periods 7.360087 7.023582 5.650223 5.216116 20 periods 11.469921 10.594014 7.469444 6.623131 Required: 1. Compute the amount of cash received from the sale of the bond. 2. Prepare the journal entry to record the sale.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2PB: Charleston Inc. issued $200,000 bonds with a stated rate of 10%. The bonds had a 10-year maturity...

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