![MyLove7817](/avatars/1466.jpg)
MyLove7817
15.07.2020 •
Business
On January 1, 2018, Professor's Credit Union (PCU) issued 7 %,20-yearbonds payable with face value of $500,000.The bonds pay interest on June 30 and December 31.
Requirement
1. If the market interest rate is 5% when PCU issues it's bonds, will the bonds be priced at face value at a premium, or at a discount? Explain.
2. If the market interest rate is 7% when PCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain.
3. The issue rice of the bonds is 96. Journalize the bond transactions. (Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits).
A. Journalize the issues of bonds on January 1, 2018
B. Journalize the payment of interest and amortization on June 30, 2018
C. Journalize the payment of interest and amortization on December 31, 2018
D. Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded.
Solved
Show answers
More tips
- H Health and Medicine How to Lower Your Child s Temperature?...
- F Food and Cooking From Latte to Espresso: Which Coffee Drink is the Most Popular on Earth?...
- C Computers and Internet How to Set Up Internet on iPhone? Detailed Guide with Step-by-Step Instructions...
- P Philosophy 8 привычек, чтобы достичь счастливой жизни...
- F Food and Cooking How Many Grams Are In a Tablespoon?...
- G Goods and services How to Choose the Right Iron: Purchase Tips...
- S Style and Beauty How to Choose the Perfect Hair Straightener?...
- H Health and Medicine How to Choose the Right Glasses?...
- H Health and Medicine What vaccines do children need?...
- H Health and Medicine AKDS Vaccination: Ensure Your Child s Safety...
Answers on questions: Business
- E English I am tall when I am young, I am short when I am old. What am I....
- M Mathematics HELP I NEED HELP ASAP A. T=g+5 B. G=t+5 C. G=7.5 D. 6t...
- M Mathematics Chicago has a temperature of -10 degrees Fahrenheit (⁰F). It is colder in Minneapolis than in Chicago. Select all the values that could represent the temperature in Minneapolis....
- M Mathematics Aray is a defined term because it has no width or depth is described using an undefined term has an informal definition travels forever in one direction...
- B Business A prison industry system, widely employed before the Civil War, in which officials sold labor of prison inmates to private businesses, for use either inside or outside...
Ответ:
the answer is c
Explanation: i just took the test