a Secure https//www.mathol Playerh homeworkld 484897452Boquestionld 28flushed-fa

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a Secure https//www.mathol Playerh homeworkld 484897452Boquestionld 28flushed-falsecld 50298718xcenterwinsyes ACCT 2301.WP oseph Herman&1 74/18 8:31 AM Homework: Chapter 09 Homework Score: 0 of 2 pts P9-42A (similar to) On May 1, 2016. Naitique Nal Salons issued $600.00 of 2s-year, 9 percent bonds paryabie The bonds were soie for $582,000 The bonds pay interest each October 31 and Apri 30. and any dscount or premum is amortined using straght ine amorization HIV Score: 25%, 2 of 8 pts Read the tent Requirement 1.Fill in the blanks to complete each statement a. Nanque Nat Salons' bonds av pncedat(€xpress me price as a percentage) L-% 0 Requirements 1. F in the banks to complete these statements Natque Nal Salons" bonds are priced at (express he price as a percentage) b. When Naitique Nail Balons issued is bonds the mke inbenest rate was (higher than e. The amount of bond discount or pemum is a ssuance of the bonds payable on May 1, 2016 2 Recond the tollowing transactions b. Payment of" terest (and antraton of ascount or premi m ? a y)onOchuber 31, 2016 Acoual of inest(and amonization of discount or premium f anyj on December 31,2016 esplanatiors are not required 3. At what amount will Naiique Nail Salons report the bonds on its balance sheet at December 31 2016? Print Done er any number in the edit felds and then dlick Check Answer Clear Al Check Answer O Type here to search 7/4/2014

Explanation / Answer

2

Issuance of Bond

Payment of Interets

b

Discount on issue=48000/(25*2)=960

Cash=600000*.09/2=27000

c

3

Bond is value December 31 -2016

=600000-48000+960+960

=553920

a 552000/600000=92% b Higher than 9% because bond is issued at discount c Bond Discount =600000-552000 =48000

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