Pool Corporation Inc. sells swimming pool supplies and equipment. It is a publicly traded corporation...

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Accounting

Pool Corporation Inc. sells swimming pool supplies and equipment. It is a publicly traded corporation that
trades on the NASDAQ exchange. The majority of Pool's customers are small, family-owned businesses.
Assume that Pool issued bonds with a face value of $750,000,000 on January 1 of this year and that the
coupon rate is 5 percent. At the time of the borrowing, the market interest rate was 4 percent. The debt
matures in 10 years. Pool pays interest on this debt on June 30 and December 31 of each year.
Required:
What was the issue price on January 1 of this year? (Do not round intermediate calculations. Enter
your answers in thousands rounded to the nearest whole thousand.)
Issue price
What amounts of interest should be paid on June 30 and December 31 of this year? (Do not round
intermediate calculations. Enter your answers in thousands rounded to the nearest whole
thousand.)
What amounts of interest expense should be recorded on June 30 and December 31 of this year?(Do
not round intermediate calculations. Enter your answers in thousands rounded to the nearest
whole thousand.)
June 30 This Year
December 31 Next Year
Determine the carrying amounts of the bonds on June 30 and December 31 of this year. (Do not
round intermediate calculations. Enter your answers in thousands rounded to the nearest whole
thousand.)
June 30 This Year
December 31 Next Year
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