Country Bank has $350,000 of 6% debenture bonds outstanding. The bonds were issued at 106 in 2021 and mature in 2041. The bonds have annual interest payments. Read the requirements Requirement 1. How much cash did Country Bank receive when it issued these bonds? At the time the bortis were issued, Country Bank received cash of Requirement 2. How much cash in total will Country Bank pay the bondholders through the maturity date of the bonds? Through the maturity date of the bonds, Country Bank will pay the bondholders total cash of Requirement 3. Calculate the difference between your answers to requirements 1 and 2. This difference represents Country Bank's total interest expense over the life of the bonds. The difference between your answers to requirements 1 and 2 is

Country Bank has $350,000 of 6% debenture bonds outstanding. The bonds were issued at 106 in 2021 and mature in 2041. The bonds have annual interest payments. Read the requirements Requirement 1. How much cash did Country Bank receive when it issued these bonds? At the time the bortis were issued, Country Bank received cash of Requirement 2. How much cash in total will Country Bank pay the bondholders through the maturity date of the bonds? Through the maturity date of the bonds, Country Bank will pay the bondholders total cash of Requirement 3. Calculate the difference between your answers to requirements 1 and 2. This difference represents Country Bank's total interest expense over the life of the bonds. The difference between your answers to requirements 1 and 2 is

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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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?
Naval Inc. issued $200,000 face value bonds at a discount and received $190,000. At the end of 2018, the balance in the Discount on Bonds Payable account is $5,000. This years balance sheet will show a net liability of ________. A. $200,000 B. $180,000 C. $195,000 D. $205,000
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Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium