On October 1, 2010 Mardy Corporation issued 5%, 10-year bonds with a face value of $1,000,000...

 

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On October 1, 2010 Mardy Corporation issued 5%, 10-year bonds with a face value of $1,000,000 at 108 (a 4% yield). Interest is paid on October 1 and April 1, with any premiums or discounts amortized on an effective-interest basis. 9. How much should be credited to Bonds Payable on the date of issuance? 10. Bond interest expense reported on the December 31, 2010 income statement of Mardy Corporation would be how much? PROBLEM 8 Use the following to answer questions 11-12: On October 1, 2010 Miyaki Corporation issued 5%, 10-year bonds with a face value of $500,000 at 108 (a 4% yield). Interest is paid on October 1 and April 1, with any premiums or discounts amortized on an effective-interest basis. 11. The credit entry to record Bonds Payable would be how much? 12. Bond interest expense reported on the December 31, 2010 income statement of Miyaki Corporation would be how much? On October 1, 2010 Mardy Corporation issued 5%, 10-year bonds with a face value of $1,000,000 at 108 (a 4% yield). Interest is paid on October 1 and April 1, with any premiums or discounts amortized on an effective-interest basis. 9. How much should be credited to Bonds Payable on the date of issuance? 10. Bond interest expense reported on the December 31, 2010 income statement of Mardy Corporation would be how much? PROBLEM 8 Use the following to answer questions 11-12: On October 1, 2010 Miyaki Corporation issued 5%, 10-year bonds with a face value of $500,000 at 108 (a 4% yield). Interest is paid on October 1 and April 1, with any premiums or discounts amortized on an effective-interest basis. 11. The credit entry to record Bonds Payable would be how much? 12. Bond interest expense reported on the December 31, 2010 income statement of Miyaki Corporation would be how much?

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