The Peg Corporation TPC issued bonds and received cash

in #2816
The Peg Corporation (TPC) issued bonds and received cash in full for the issue price. The
bonds were dated and issued on January 1, 2012. The stated interest rate was payable at the
end of each year. The bonds mature at the end of four years. The following schedule has been
prepared (amounts in thousands):Required:1. Complete the amortization schedule.2. What was
the maturity amount (face value) of the bonds?3. How much cash was received at date of
issuance of the bonds?4. Was there a premium or a discount? If so, which and how much was
it?5. How much cash is paid for interest each period and will be paid in total for the full life of the
bond issue?6. What is the stated interest rate?7. What is the market interest rate?8. What
amount of interest expense should be reported on the income statement each year?9. Show
how the bonds should be reported on the balance sheet at the end of 2013 and 2014.View
Solution:
The Peg Corporation TPC issued bonds and received cash in

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