On April 1, 2006, Naruto Company issued at 99 plus accrued interest, 2,000 of its 8% P1,000 face value bonds. The bonds are dated January 1, 2006, mature on January 1, 2016, and pay interest on July 1 and January 1. Naruto paid bond issue cost of P70,000. From the bond issuance, Naruto received net cash of

On April 1, 2006, Naruto Company issued at 99 plus accrued interest, 2,000 of its 8% P1,000 face value bonds. The bonds are dated January 1, 2006, mature on January 1, 2016, and pay interest on July 1 and January 1. Naruto paid bond issue cost of P70,000. From the bond issuance, Naruto received net cash of

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 7EA: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The...

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On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
Naval Inc. issued $200,000 face value bonds at a discount and received $190,000. At the end of 2018, the balance in the Discount on Bonds Payable account is $5,000. This years balance sheet will show a net liability of ________. A. $200,000 B. $180,000 C. $195,000 D. $205,000
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