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P10-11 (Algo) Recording and Reporting a Bond Issued at a Premium (with Premium Account) LO10-5...

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Accounting

P10-11 (Algo) Recording and Reporting a Bond Issued at a Premium (with Premium Account) LO10-5

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[The following information applies to the questions displayed below.]

Serotta Corporation is planning to issue bonds with a face value of $330,000 and a coupon rate of 16 percent. The bonds mature in two years and pay interest quarterly every March 31, June 30, September 30, and December 31. All of the bonds were sold on January 1 of this year. Serotta uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 12 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1)

Note: Use appropriate factor(s) from the tables provided.

P10-11 Part 3

3. What bonds payable amount will Serotta report on this year's December 31 balance sheet?

Note: Round your final answer to nearest whole dollar amount

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