Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1,2023, ayayai corporation purchased a

On January 1,2023, Ayayai Corporation purchased a newly issued $1,550,000 bond. The bond matured on...

60.1K

Verified Solution

Question

Accounting

On January 1,2023, Ayayai Corporation purchased a newly issued $1,550,000 bond. The bond matured on December 31,2025, and
paid interest at 6% every June 30 and December 31. The market interest rate was 8%. Ayayai's fiscal year-end is October 31, and the
company had the intention and ability to hold the bond until its maturity date. The bond will be accounted using the amortized cost
model.
Click here to view Table A.2- PRESENT VALUE OF 1-(PRESENT VALUE OF A SINGLE SUM)
Click here to view Table A.4- PRESENT VALUE OF AN ORDINARY ANNUITY OF 1
(a)
Calculate the price paid for the bond using a financial calculator or Excel functions. (Round answers to 2 decimal places, e.g.52.75.)
PV $
image

Answer & Explanation Solved by verified expert
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

Other questions asked by students