On December 31, 2011, Garner Hot Rods issued $2,000,000 of 6 percent, 10-year bonds. Interest is payable semiannually on June 30 and December 31.
Answer to relevant QuestionsOn December 31, 2012, Callahan Auto issued $1,500,000 of 8 percent, 10-year bonds. Interest is payable semiannually on June 30 and December 31. Required: What is the issue price if the bonds are sold to yield 6 percent? Klamath Manufacturing sold 20-year bonds with a total face amount of $1,000,000 and a stated rate of 7.5 percent. The bonds sold for $1,080,000 on December 31, 2011, and pay interest semiannually on June 30 and December 31. ...Johnson Company sold for $90,000 a $102,400, two-year zero coupon bond on December 31, 2011. The bond matures on December 31, 2013. Required: 1. Prepare the entry to record the issuance of the bond. 2. Prepare the ...ABC bank loans $250,000 to Yossarian to purchase a new home. Yossarian will repay the note in equal monthly payments over a period of 30 years. The interest rate is 12 percent. Required: If the monthly payment is ...Perez Company borrowed $100,000 from the First National Bank on April 1, 2011, on a three- year, 7.8 percent note. Interest is paid annually on April 1. Required: 1. Record the borrowing transaction in Perez’s ...
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