Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

تمرين 20

Comparing Bonds Issued at Par, Discount, and Premium
Net Work Corporation, whose annual accounting period ends on December 31, issued the following bonds:

Required:
1. Provide the following amounts to be reported on the January 1, 2012, financial statements immediately after the bonds were issued:

2. Assume that you are an investment adviser and a retired person has written to you asking, "Why should I buy a bond at a premium when I can find one at a discount Isn't that stupid It's like paying list price for a car instead of negotiating a discount." Write a brief message in response to the question.