Reporting Bonds Issued at Par
On January 1, 2011, Nowell Company issued $300.000 in bonds that mature in five years. The bonds have a stated interest rate of 8 percent and pay interest on June 30 and December 31 each year. When the bonds were sold, the market rate of interest was 8 percent.
Required:
1. What was the issue price on January 1, 2011?
2. What amount of interest expense should be recorded on (a) June 30. 2011? and (b) December 31. 2011 ?
3. What amount of cash interest should be paid on (a) June 30. 2011 ? and (b) December 31. 2011 ?
4. What is the book value of the bonds on (a) December 31. 2011 ? and (b) December 31. 2012?
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.