On January 1, 2025, Concord Industries Inc. issued a $89,000, 7% bond due in 10 years with interest payable each January 1 and July 1. The effective interest rate is 9%. Click here to view factor tables. (a) Determine the discount or premium on the bond. (For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124 and final answer to O decimal places, e.g. 5,275.)

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
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Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...
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On January 1, 2025, Concord Industries Inc. issued a $89,000, 7% bond due in 10 years with interest payable
each January 1 and July 1. The effective interest rate is 9%.
Click here to view factor tables.
G
(a)
Determine the discount or premium on the bond. (For calculation purposes, use 5 decimal places as
displayed in the factor table provided, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.)
Transcribed Image Text:On January 1, 2025, Concord Industries Inc. issued a $89,000, 7% bond due in 10 years with interest payable each January 1 and July 1. The effective interest rate is 9%. Click here to view factor tables. G (a) Determine the discount or premium on the bond. (For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.)
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