Question
A COMPANY ISSUE A BOND WITH THE FOLLOWING DETAILS FACE A BOND WITH FACE AMOUNT 80,000 CONTRACT RATE 16% TERMS OF BONDS 5 YEAR BOND,SEMI
A COMPANY ISSUE A BOND WITH THE FOLLOWING DETAILS FACE A BOND WITH FACE AMOUNT 80,000 CONTRACT RATE 16% TERMS OF BONDS 5 YEAR BOND,SEMI ANNUAL PMTS MARKET RATE 11% INDEX NO. ( PV OF FACE AMOUNT OF BOND) 0.58543 INDEX NO. ( PV OF ANNUITY) 7.53763 CALCULATE: A TOTAL NUMBER OF INTEREST PMTS ? B INTEREST PMT/YEAR ? C SEMI ANNUAL PMT ? D SELLING PRICE OF BOND ? E IS THE ISSUENCE AT DISCOUT OR PREMIUM? ? JOURNALIZE THE FOLLOWING ENTERIES F ISSUENCE OF THE BOND G PAYMENT OF FIRST INTEREST EXPENSE (WITHOUT AMORTIZATION) H AMORTIZATION OF DISCOUNT/PREMIUM I RETIREMENT OF BOND AT THE TIME OF MATURITY J SUPPOSE THE COMPANY DOES NOT RETIRE THE BOND AT MATURITY AND INSTEAD IT REDEEMS THE BOND WITH THE FOLLWING DETAILS UMAMORTIZED PREMIUM/DISCOUNT 8000 THE COMPANY REDEEMED 1/4 TH OF THE BONDS WITH CALLING PRICE 18,000 JOURNALIZE THE ENTRY FOR REDEMPTION OF BOND
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