Bonds Payable: On January 1, 2014 – ABC issued $800,000.00 of20-year, 11% bonds for...

90.2K

Verified Solution

Question

Accounting

Bonds Payable: On January 1, 2014 – ABC issued $800,000.00 of20-year, 11% bonds for $739,814.81, yielding a market (yield) rateof 12%. Interest is payable semiannually on June 30th and December31.
a. Confirm the bond issue price.
b. Indicate the financial statement effects using the templatefor
(1) bond issuance
(2) semiannual interest payable and discount amortization onJune 30, 2014
(3) semiannual interest payment and discount amortization onDecember 31, 2014.

Answer & Explanation Solved by verified expert

3.9 Ratings (646 Votes)

ansgiven dataBonds Payable On January 1 2014 ABC issued 80000000 of20year11 bonds for 73981481yielding a market rate of 12Interest is payable semiannually on June 30th and December31a See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingBonds Payable: On January 1, 2014 – ABC issued $800,000.00 of20-year, 11% bonds for $739,814.81,...Bonds Payable: On January 1, 2014 – ABC issued $800,000.00 of20-year, 11% bonds for $739,814.81, yielding a market (yield) rateof 12%. Interest is payable semiannually on June 30th and December31.a. Confirm the bond issue price.b. Indicate the financial statement effects using the templatefor(1) bond issuance(2) semiannual interest payable and discount amortization onJune 30, 2014(3) semiannual interest payment and discount amortization onDecember 31, 2014.