19. Assume that on January 1, Comcast issues $100,000 of 3-year, 10% coupon bonds payable, yielding an effective annual interest rate of 8%. Interest is payable annually on December 31. Prepare an amortization table for the bonds for the three years. I lo 0 1 2 3 Total Interest Expense Coupon Interest Premium Amortization Premium Balance Bond Payable, Net

19. Assume that on January 1, Comcast issues $100,000 of 3-year, 10% coupon bonds payable, yielding an effective annual interest rate of 8%. Interest is payable annually on December 31. Prepare an amortization table for the bonds for the three years. I lo 0 1 2 3 Total Interest Expense Coupon Interest Premium Amortization Premium Balance Bond Payable, Net

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5EA: Diana Inc. issued $100,000 of its 9%, 5-year bonds for $96,149 when the market rate was 10%. The...

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Charleston Inc. issued $200,000 bonds with a stated rate of 10%. The bonds had a 10-year maturity date. Interest is to be paid semi-annually and the market rate of interest is 8%. If the bonds sold at 113.55, what amount was received upon issuance?
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?
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Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?