If $945,000 of 10% bonds are issued at 102 3/4, the amount of cash received from the sale isOa. $945,000Ob. $1,039,500Oc. $970,988Od. $708,750

The bonds' face value is $100 per bond. Bonds are issued at a premium of $2.75 at a total issue…

Answered: If $945,000 of 10% bonds are issued at…

If $945,000 of 10% bonds are issued at 102 3/4, the amount of cash received from the sale is 4 Oa. $945,000 Ob. $1,039,500 Oc. $970,988 Od. $708,750

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 7EB: Willoughby Inc. issued 100 bonds with a face value of $1,000 and a stated rate of 4% and received...

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Concept explainers

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like:

Question

If $945,000 of 10% bonds are issued at 102 3/4, the amount of cash received from the sale is
Oa. $945,000
Ob. $1,039,500
Oc. $970,988
Od. $708,750

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