Short answer - fill in the blanks below.
On December 31, 2005, Hanks Service Co. issued $300,000 face value, 9%, 5-year bonds for cash of $ 288,417, a price that yields 10%. Interest is to be paid annually.
Compute the amount of interest Hanks Co. will pay to bondholders each year during the term of the bonds. ______________
On January 2,1998, Lang Co. had issued $100,000 of 12% bonds to yield 10%. On January 2, 2000, the Premium on Bonds Payable account had a balance of $8,000. This account shows the unamortized amount of the premium.
Determine the carrying value of the bonds 1/2/2000. ______________
Determine the amount paid to bondholders at the maturity date of the bonds, January 2, 2008. ________________
Please note - be sure to provide both amounts in your answer.
mkrmer
0
13 years ago
20
