On 1/1/10, R-U Ready issued $100,000, 6.5%, 10-year bonds at an
effective rate of 4.75%. Interest...
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Accounting
On 1/1/10, R-U Ready issued $100,000, 6.5%, 10-year bonds at aneffective rate of 4.75%. Interest is paid annually on 12/31 of eachyear.
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Present the accounts and dollar amounts that would appear oncomparative balance sheets and income statements for the yearsending 12/31/16 and 12/31/15.
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3.6 Ratings (264 Votes)
Bonds face value is given as 100000 with coupon payment as 65 but effective rate is only 475 ie bonds is issued at a premium that can be calculated as follows FV 100000 PMT 6500 100000 x 65 Rate 475 effective rate as given NPER 10 PV 11367861
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