bond contract rate=7% semi-anual bond par=$10,000 bond market =6% semi-annual bond life =10 years  1) find the selling price of this bond  2) will it be sold at a discount or premium 3) do the journal entry for the issuance 4) calculate the discount/premium authorization per period (use the sightline method ) 5 )do the entry for the payment of cash interest period 6) do the entry for the amortization of the discount /premium per period  7) find total interest expense per period  8) show the balance sheet presentation of the bond after two periods have elapsed

College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter22: Corporations: Bonds
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bond contract rate=7% semi-anual

bond par=$10,000

bond market =6% semi-annual

bond life =10 years 

1) find the selling price of this bond 

2) will it be sold at a discount or premium

3) do the journal entry for the issuance

4) calculate the discount/premium authorization per period (use the sightline method )

5 )do the entry for the payment of cash interest period

6) do the entry for the amortization of the discount /premium per period 

7) find total interest expense per period 

8) show the balance sheet presentation of the bond after two periods have elapsed

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