On January 1, 2025, Crane Co. issued ten-year bonds with a face value of $5,500,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are:Present value of 1 for 10 periods at 10% 0.38554Present value of 1 for 10 periods at 12% 0.32197Present value of 1 for 20 periods at 5% 0.37689Present value of 1 for 20 periods at 6% 0.31180Present value of annuity for 10 periods at 10% 6.14457Present value of annuity for 10 periods at 12% 5.65022Present value of annuity for 20 periods at 5% 12.46221Present value of annuity for 20 periods at 6% 11.46992Calculate the issue price of the bonds. (Round final answer to 0 decimal places, e.g. 25,000.)Issue price of bond

Lets understand the basics.Bond can be issued at,(1) Par value(2) At premium(3) At discount If bond…

Answered: On January 1, 2025, Crane Co. issued…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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On January 1, 2025, Crane Co. issued ten-year bonds with a face value of $5,500,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are:

Present value of 1 for 10 periods at 10%		0.38554
Present value of 1 for 10 periods at 12%		0.32197
Present value of 1 for 20 periods at 5%		0.37689
Present value of 1 for 20 periods at 6%		0.31180
Present value of annuity for 10 periods at 10%		6.14457
Present value of annuity for 10 periods at 12%		5.65022
Present value of annuity for 20 periods at 5%		12.46221
Present value of annuity for 20 periods at 6%		11.46992

Calculate the issue price of the bonds. (Round final answer to 0 decimal places, e.g. 25,000.)

Issue price of bond

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Prepare the amortization table for 2025, assuming that amortization is recorded on interest payment dates using the effective-interest method. (Round answers to 0 decimal places, e.g. 25,000.)

Date	Cash	Expense	Amortization	Carrying Amount
1/1/25				$enter a dollar amount
6/30/25	$enter a dollar amount	$enter a dollar amount	$enter a dollar amount	enter a dollar amount
12/31/25	enter a dollar amount	enter a dollar amount	enter a dollar amount	enter a dollar amount