ACCT 551 help A Guide to career/uophelp.com ACCT 551 help A Guide to career/uophelp.com | Page 23

Question 12. Question :
(TCO D) If bonds are issued between
interest dates, the entry on the books of the issuing corporation could
include a
Question 13. Question :
(TCO D) On January 1, 2010, Ellison Co.
issued 8-year bonds with a face value of $1,000,000 and a stated interest
rate of 6%, payable semiannually on June 30 and December 31. The
bonds were sold to yield 8%. Table values are as follows:
Present value of 1 for eight periods at 6%
Present value of 1 for eight periods at 8%
Present value of 1 for 16 periods at 3%
Present value of 1 for 16 periods at 4%
Present value of annuity for eight periods at 6%
Present value of annuity for eight periods at 8%
Present value of annuity for 16 periods at 3%
Present value of annuity for 16 periods at 4%
.627
.540
.623
.534
6.210
5.747
12.561
11.652
The issue price of the bonds is
Question 14. Question :
(TCO D) A company issues $20,000,000,
7.8%, 20-year bonds to yield 8% on January 1, 2010. Interest is paid on
June 30 and December 31. The proceeds from the bonds are
$19,604,145. What is the interest expense for 2011, using straight-line
amortization?