Homework Answers
1. Selling price of the bonds = Present value of interest at 6%, 10 years + Present value of maturity amount at 6%, 10 years
= 150000*10%*6/12*7.360 + 150000*558
= $138959.90
2.
| Accounts | Debit | Credit |
| Interest expense (150000*12%*6/12) | 9000 | |
| Discount on bonds payable | 1500 | |
| Cash (150000*10%*6/12) | 7500 |
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