Question: Maier Corporation issued 700 000 of 6 six year bonds for 735 902
Maier Corporation issued $700,000 of 6%, six-year bonds for $735,902 on July 1, 2014, the day the bonds were dated. The market interest rate was 5%. Interest is paid semi-annually beginning December 31, 2014. Maier uses the effective interest method to amortize bond discounts and premiums. Record the issuance of the bonds and the first payment of interest.
Answer to relevant QuestionsDawson Limited issued 12%, 10-year bonds with a par value of $60,000 and semi-annual interest payments. On the issue date, the annual market rate of interest for the bonds was 10%, and they sold for $67,478. The effective ...On January 1, 2014, the Pareto Company borrowed $80,000 in exchange for an interest-bearing note. The note plus interest compounded at an annual rate of 8% is due on December 31, 2016. Calculate the amount that Pareto will ...Chinook Inc. has available for issue a $3,200,000 bond due in eight years. Interest at the rate of 6% is to be paid semi-annually. Calculate the issue price if the market interest rate is:a.5.5%b.6%c.6.75%Point North Inc. issued bonds on September 1, 2014, with a par value of $150,000. The bonds mature in 15 years and pay 8% annual interest in two semi-annual payments. On the issue date, the annual market rate of interest for ...On December 31, 2014, Sackport Ventures Inc. borrowed $90,000 by signing a four-year, 5% installment note. The note requires annual payments of accrued interest and equal amounts of principal on December 31 of each year from ...
Post your question