Question: Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $60,000 for $64,633 on January 1, 2012. The market interest rate for bonds of

Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $60,000 for $64,633 on January 1, 2012. The market interest rate for bonds of similar risk and is 5%. Interest is paid annually on December 31.
1. Record the bond issue.
2. Record the first interest payment on December 31, 2012.

Step by Step Solution

★★★★★

3.42 Rating (174 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 January 1 2012 Cash 64633 Bonds Payabl... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1165-B-A-G-F-A(12029).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Ultimate Butter Popcorn issues 7%, 10-year bonds with a face amount of $60,000. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually. At what price...

Ultimate Butter Popcorn issues 7%, 20-year bonds with a face amount of $60,000. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price...

Ultimate Butter Popcorn issues 7%, 15-year bonds with a face amount of $60,000. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually. At what price...

Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $63,000 for $63,000 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid...

PLEASE answer all. 3 4 5 Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $52,000 for $48,348 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is...

Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $55,000 for $59,287 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid...

Pretzelmania, Inc., Issues 6%, 10-year bonds with a face amount of $69,000 for $74,378 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid...

Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $55,000 for $55,000 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid...

Brief Exercise 9-8 Record bond issue at a premium and related semiannual interest (LO9-5) Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $66,000 for $71,144 on January 1, 2021....

Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $60,000 for $60,000 on January 1, 2012. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid...

If an FI has the same amount of foreign assets and foreign liabilities in the same currency, has that FI necessarily reduced the risk involved in these international transactions to zero? Explain.

TOK is working on a housing project to maximize the collected tax. The project involves two phases: (l) demolishing substandard houses and (2) building the new houses. The following is a summary of...

6. Describe how a manager who derives satisfaction from both income and shirking allocates a 10-hour day between these activities when paid an annual, fixed salary of $110,000. When this same manager...

What are the major uses of factor analysis?

Dungy Training Company has a current ratio of 0.70 to 1, based on current assets of $3.43 million and current liabilities of $4.90 million. How, if at all, will a $900,000 cash purchase of inventory...

Peytons Palace has net income of $15 million on sales revenue of $130 million. Total assets were $96 million at the beginning of the year and $104 million at the end of the year. Calculate Peytons...

LaDanions Limos reports net income of $130,000, average total assets of $700,000, and average total liabilities of $340,000. Calculate LaDanions return on assets and return on equity ratios.

Blossom Co. gathered the following information on power costs and factory machine usage for the last six months: Using the high-low method of analyzing costs, answer the following questions and show...

! Required information Problem 8-73 (LO 8-4) (Algo) [The following information applies to the questions displayed below.) In 2020, Laureen is currently single. She paid $2,800 of qualified tuition...

Paul Sabin organized Sabin Electronics 10 years ago to produce and sell several electronic devices on which he had secured patents. Although the company has been fairly profitable, it is now...