Business, 21.05.2021 17:20 espinosajoselyn

Santa Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond's coupon rate is 6 percent and interest is paid once a year on December 31. The bond matures in three years. The annual market rate of interest was 10 percent at the time the bond was sold. The following amortization schedule pertains to the bond issued: Cash Paid Interest Expense Amortization Balance
January 1, Year 1 $901
December 31, Year 1 $60 $90 $30 931
December 31, Year 2 60 93 33 964
December 31, Year 3 60 96 36 1,000

Required:
a. What was the bond's issue price?
b. Did the bond sell at a DISCOUNT or a PREMIUM? and How much was the premium or discount?
c. What amount(s) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2?

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Santa Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond's co...

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