When Patey Pontoons issued 7% bonds on January 1, 2009, with a face amount of $530,000, the
Question:
When Patey Pontoons issued 7% bonds on January 1, 2009, with a face amount of $530,000, the market yield for bonds of similar risk and maturity was 8%. The bonds mature December 31 2012 (4 years). Interest is paid semiannually on June 30 and December 31.
Required:
Determine the price of the bonds at January 1, 2009, and prepare the journal entry to record their issuance by Patey on January 1, 2009.
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Computation of the bond value Given information Bond value 530000 Copou...View the full answer
Answered By
Muhammad Ahtsham Shabbir
I am a professional freelance writer with more than 7 years’ experience in academic writing. I have a Bachelor`s Degree in Commerce and Master's Degree in Computer Science. I can provide my services in various subjects.
I have professional excellent skills in Microsoft ® Office packages such as Microsoft ® Word, Microsoft ® Excel, and Microsoft ® PowerPoint. Moreover, I have excellent research skills and outstanding analytical and critical thinking skills; a combination that I apply in every paper I handle.
I am conversant with the various citation styles, among them; APA, MLA, Chicago, Havard, and AMA. I also strive to deliver the best to my clients and in a timely manner.My work is always 100% original. I honestly understand the concern of plagiarism and its consequences. As such, I ensure that I check the assignment for any plagiarism before submission.
392+ Reviews
587+ Question Solved
Related Book For 
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Question Posted:
