The Management of PT Authorized an Issue of $120,000 Bonds

question 73

Essay

The management of PT authorized an issue of $120,000 bonds payable, 6% (annual interest rate), dated January 1, 2000.The bonds mature on December 31, 2015 (5 years).Interest is payable each June 30 and December 31.The bonds were sold on May 1, 2010, at an effective (yield)rate of 8%.
(a)The bonds were sold at a ________ premium; discount (check one).
(b)Give the entry for PT to record the sale of the bonds on May 1, 2010.Show computations for the issue price.

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Definitions:

Automaker

A company that manufactures and sells automobiles, playing a key role in the automotive industry.

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Environments or situations characterized by calmness and tranquility, often conducive to relaxation or meditation.

Conditioned Stimulus

A previously neutral stimulus that, after being associated with an unconditioned stimulus, evokes a conditioned response.

Hot Dogs

Cooked sausages, traditionally grilled or steamed and served in a sliced bun as a fast food.