Analyzing and Reporting Financial Statement Effects of BondTransactions On January 1, 2012, Trueman Corporation issued$500,000 of 20-year, 11% bonds for $462,384, yielding a market(yield) rate of 12%. Interest is payable semiannually on June 30and December 31.
(a) Confirm the bond issue price. (Use a financial calculator orExcel to compute. Round answers to the nearest whole number.)Present value of principal repayment =$Answer 0 Incorrect Presentvalue of interest payments =$Answer 0 Incorrect Selling price ofbonds =$ 462,384
(b) Indicate the financial statement effects using the templatefor (1) bond issuance, (2) semiannual interest payment and discountamortization on June 30, 2012, and (3) semiannual interest paymentand discount amortization on December 31, 2012. (Round answers tothe nearest whole number.)
Please explain the answer