A $300,000, ten-year, 6% bond issue was sold to yield 7% interest payable annually. Actuarial information for 10 periods is as follows:

A $300,000, ten-year, 6% bond issue was sold to yield 7% interest payable annually. Actuarial information for 10 periods is as follows:

 

 

	6%	7%
Present value of 1	.558	.508
Present value of an annuity of 1	7.360	7.024 Refer to Exhibit 3.  These bonds sold at

 

 

Answer

		a premium
		a discount
		par
		cannot be determined from the information given

6 points  

Question 30

1.  

           Refer to Exhibit 3. At date of issuance cash received would be

Answer

		$278,832
		$293,820
		$299,904
		$300,000

6 points  

Question 31

1.  

           Refer to Exhibit 3. The discount at the date of bond issuance would be

Answer

		$         0
		$       96
		$  6,180
		d. $21,168

6 points  

Question 32

1.  

R                    Refer to Exhibit 3. Using the effective interest method interest expense at the end of the first year is

Answer

		$21,000
		$19,518
		$18,000
		$16,730

CLICK HERE TO GET THE ANSWER !!!!