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  3. 8. auerbach inc. issued 4% bonds on october 1, 202

8. Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity...

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Accounting

8.

Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $470 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6%. Assuming that Auerbach issued the bonds for $400,078,000, what would the company report for its net bond liability balance after its first interest payment on March 31, 2022?

9. On January 1, 2021, Solo Inc. issued 1,800 of its 7%, $1,000 bonds at 97.8. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2031. Solo paid $56,000 in bond issue costs. Solo uses straight-line amortization. What is the carrying value of the bonds reported in the December 31, 2021, balance sheet?

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