Reporting Bonds Issued at Par

Required information P10-2 (Static) Reporting Bonds Issued at Par LO 10-2 [The following information applies to the questions displayed below] On January 1 of this year, Nowell Company issued bonds with a face value of $100,000 and a coupon rate of 8 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31 . When the bonds were sold, the annual market rate of interest was 8 percent. (FV of \$1, PV of \$1, PVA of \$1, and PVA of \$1) (Use the appropriate factor(s) from the tables provided.) P10-2 Part 1 Required: 1. What was the issue price on January 1 of this year? (Round your final answers to nearest whole dollar amount.) Required information P10-2 (Static) Reporting Bonds Issued at Par LO 10-2 [The following information applies to the questions displayed below]. On January 1 of this year, Nowell Company issued bonds with a face value of $100,000 and a coupon rate of 8 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31 . When the bonds were sold, the annual market rate of interest was 8 percent. (FV of \$1, PV of \$1, FVA of \$1, and PVA of \$1) (Use the appropriate factor(s) from the tables provided.) P10-2 Part 2 2. What amount of interest expense should be recorded on June 30 and December 31 of this year? Required information P10-2 (Static) Reporting Bonds Issued at Par LO 10-2 [The following information applies to the questions displayed below. On January 1 of this year, Nowell Company issued bonds with a face value of $100,000 and a coupon rate of 8 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31 . When the bonds were sold, the annual market rate of interest was 8 percent. (FV of \$1, PV of \$1, FVA of \$1, and PVA of \$1) (Use the appropriate factor(s) from the tables provided.) P10-2 Part 3 3. What amount of cash is owed to investors on June 30 and December 31 of this year? Required information P10-2 (Static) Reporting Bonds Issued at Par LO 10-2 [The following information applies to the questions displayed below.] On January 1 of this year, Nowell Company issued bonds with a face value of $100,000 and a coupon rate of 8 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31 . When the bonds were sold, the annual market rate of interest was 8 percent. (FV of \$1. PV of \$1. FVA of \$1, and PVA of \$1) (Use the appropriate factor(s) from the tables provided.) P10-2 Part 4 4. What is the book value of the bonds on December 31 of this year? December 31 of next year