8% 9-year bonds for $185,452 yielding a market (yield) rate 10% Semiannua interest is payable on 6. Analyzing and Reporting Financial Statement Effects of Bond Transactions Jan 01 of the current year, Shields Inc. issued $ 210,000 of Jun 30 and Dec 31 of each year. (a) Show Excel inputs to confirm the bond issue price Note: Round your answer to two decimal places. rate= nper 10% 9 / 2 = x 2 = 0.05 18 pmt= FV = $210,000 4.0% = $ (8,400) = = $ (210,000) $185,451.87 answer= =PV(0.05,18,-8400,-210000) (b) Indicate the financial statement effects using the template for (1) bond issuance $185,452 TRUE (2) semiannual interest payment and premium amortization on June 30 of the current year (3) semiannual interest payment and premium amortization on December 31 of the current year Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Note: Round your answers to the nearest whole dollar. balance sheet income statement transacti cash noncash on asset + assets = liabilities contri. capital + (1) $185,452 + $ = $ 185,452 $ + earned capital $ expense revenue 5 = $ $ cash N/A (2) $ (8,400) + $ = $ cash N/A long term debt long term debt N/A N/A N/A N/A net income $ N/A **The bond is reported at its sale price, which is par value of $560,000 minus the discount of $65,462. 873 + $ + $ (9,273) $ $ 9,273 $ (9,273) N/A retained earnings N/A interest expense (3) $ (8,400) + $ = $ 916 $ + $ (9,316) $ cash N/A long term debt N/A retained earnings N/A $ 9,316 interest expense $22,400 cash paid = bond face amount x coupon rate ($560,000 x 0.04). The $24,726 interest expense = bond carrying an The difference between the two is the amortization of the premium, which decreases the bond carrying amount. $ (9,316) $22,400 cash paid = bond face amount x coupon rate ($560,000 x 0.04). The $24,843 interest expense = bond carrying ar The difference between the two is the amortization of the premium, which decreases the bond carrying amount.