A Corporation issued a 5-year 9.5% P1,000,000 face value bonds to B Corporation in an 8.16% market on January 1, 2022, paying interest annually. a. How much is the bond premium upon issuance of the bond? b. How much cash was credited from As account for this bond on year 2? c. What is the total interest expense through the life of the bond?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 2PB: Charleston Inc. issued $200,000 bonds with a stated rate of 10%. The bonds had a 10-year maturity...
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A Corporation issued a 5-year 9.5% P1,000,000 face value bonds to B Corporation in an 8.16% market on January 1, 2022, paying interest annually. a. How much is the bond premium upon issuance of the bond? b. How much cash was credited from As account for this bond on year 2? c. What is the total interest expense through the life of the bond? d. What is the book value of the bond on year 5? e. How much cash was credited from A's account upon the bond's maturity?
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