Please Help!!!!!! (3 questions)
1) Describe the use of fair value to report financial investments.
2)On January 1, 2015, Parsons Company purchased $84,000, 10 year, 7% government bonds at 100. The semi-annual interest payment dates are June 30 and December 31.
Journalize the Feb 1, 2016 sale of the bonds for $82,000 plus accrued interest for one month.
3)If the market rate of interest is 8%, the price of 6% bonds paying interest semiannually with a face value of $100,000 will be... (please show computations)
a) Equal to 100,00
b)Greater than 100,000
c)Less than 100,000