Chapter 10 Homework Problems_FORMATTED

Chapter 10 Homework Problems_FORMATTED - Chapter 10...

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Chapter 10 Homework Problems E10-4 Computing Issue Prices of Bonds for Three Cases LO2, 3, 4 LaTanya Corporation is planning to issue $107,000, five-year, 9 percent bonds. Interest is payable each December 31. All of the bonds will be sold on January 1, 2011. (Use Table 1 , Table 2 ) Required: Compute the issue (sale) price on January 1, 2011, for each of the following independent cases: a. Case A: Market (yield) rate, 9 percent. Issue price b. Case B: Market (yield) rate, 7 percent. Issue price c. Case C: Market (yield) rate, 11 percent. Issue price
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Amortization) LO3 On January 1, 2011, Clearwater Corporation sold a $756,000, 8 percent bond issue (9 percent market rate). The bonds were dated January 1, 2011, pay interest each December 31, and mature in 5 years. (Use Table 1 , Table 2 ) Required: 1 . Prepare the journal entry to record the issuance of the bonds. Date General Journal Debit Credit Jan. 1 Cash Discount on bonds payable Bonds payable 2 Prepare the journal entry to record the interest payment on June 30, 2011. Use straight-line amortization.
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This note was uploaded on 11/03/2011 for the course AEM 2210 at Cornell University (Engineering School).

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Chapter 10 Homework Problems_FORMATTED - Chapter 10...

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