4/4/04, Corporation, which has a 12/31 year end authorized $1,500,000 of callable, mortgage bonds (secured by $2,200,000 of property and equipment, at market value). The bonds paid interest at a rate of 8% per year and had a term of 6 years. Interest was payable each 9/30, and 3/31. On 7/1/05, they issued 1,000 of the bonds in exchange for $906,000 in cash. On 10/1/07, Bloomington called the bonds and paid $1,150,000 in cash.

Question

4/4/04, Corporation, which has a 12/31 year end authorized $1,500,000 of callable, mortgage bonds (secured by $2,200,000 of property and equipment, at market value). The bonds paid interest at a rate of 8% per year and had a term of 6 years. Interest was payable each 9/30, and 3/31. On 7/1/05, they issued 1,000 of the bonds in exchange for $906,000 in cash. On 10/1/07, Bloomington called the bonds and paid $1,150,000 in cash.

I am having trouble finding the the amount for bonds payable, cash for the issuance date (4/1/04). Can anyone help?

Answer 1

To find the amount for bonds payable, cash for the issuance date (4/1/04), we need to calculate the initial amount raised by issuing the bonds.

The information given states that Corporation authorized $1,500,000 of callable mortgage bonds. This means that they had the permission to issue up to $1,500,000 worth of bonds.

However, the question does not provide the details of the actual issuance of the bonds on 4/1/04. It does not mention the number of bonds issued or the cash received. Without this information, it is not possible to determine the exact amount for bonds payable, cash on the issuance date.

If you have any additional information regarding the number of bonds issued or the cash received on 4/1/04, please provide it so that I can help you with the calculation.