Question
ABC Co. issued 11% bonds with a face amount of $8 million on Jan. 1, 2020, maturing Dec. 31, 2039. The market rate is 12%.
ABC Co. issued 11% bonds with a face amount of $8 million on Jan. 1, 2020, maturing Dec. 31, 2039. The market rate is 12%. Interest is paid twice a year on 6/30 and 12/31. ABC Co. uses the effective method for recording interest.
- Create an amortization schedule via Excel with the following headlines: Date / Cash Interest / Effective Interest / Increase in Balance / Outstanding Balance. Round to the nearest whole number. Create a second table with your formulas.
- Prepare journal entries for:
- issuance on 1/1/2020
- recording interest on 6/30/2020
- recording interest on 12/31/2020
- recording interest on 6/30/2039
- payment of interest and principle on 12/31/2039.
- What is the selling price using Excels PV function?
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Understanding And Conducting Information Systems Auditing
Authors: Arif Ahmed, Veena Hingarh
1st Edition
1118343743, 978-1118343746
