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.

Appreciate the significance of programs aimed at improving children's health, mental well-being, and safety.

Understand the prevalence and psychological impact of dieting practices in early childhood.

Identify and discuss common health issues related to body image among children.

Recognize the role of cultural differences and familiar substances in logical reasoning during childhood.

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Definitions:

Contingent Liability

A potential financial obligation that may occur depending on the outcome of a future event.

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payments on debt over a reporting period.

Note Payable

A written agreement where one party promises to pay another party a definite sum of money either on demand or at a specified future date.

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, becomes due and payable.