17. On January 1, Year 1, Liuxin Company authorizes and issues $300,000, 5% interest-bearing bonds. The bonds will mature on December 31of Year 5, and pay interest semiannually on June 30 and December 31. Compute the selling price of the bonds (rounded to the nearest dollar) under three different market rate assumptions. Market Rate A) $300,000 B) $300,000 C) $300,000 D) $300,000 6% $287,204 $277,920 4% $313,474 $324,333 $263,501 $380,843 $222,719 $351,181

17. On January 1, Year 1, Liuxin Company authorizes and issues $300,000, 5% interest-bearing bonds. The bonds will mature on December 31of Year 5, and pay interest semiannually on June 30 and December 31. Compute the selling price of the bonds (rounded to the nearest dollar) under three different market rate assumptions. Market Rate A) $300,000 B) $300,000 C) $300,000 D) $300,000 6% $287,204 $277,920 4% $313,474 $324,333 $263,501 $380,843 $222,719 $351,181

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 7EA: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The...

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On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semiannually. What is the journal entry to record the issuance of the bonds?
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