Analyzing and Reporting Financial Statement Effects of Bond Transactions

On January 1 of the current year, Banek Inc. issued $350,000 of 8%, nine?year bonds for $309,086, which implies a market (yield) rate of 10%. Semiannual interest is payable on June 30 and December 31 of each year.

a.Show Excel inputs to confirm the bond issue price.

Note:Round your answer to two decimal places.

BusinessCourse ^ Return to course nper = pmt = FV = Answer = $ Accounts payable Cash b. Indicate to Gain on bond retirement ffects using the template for (1) bond issu payment an Interest expense on December 31 of the current year. Note: For ea Interest revenue dicate the appropriate account name. Ent Note: Indica punt category by including a negative sign Note: Round Long term debt earest whole dollar. Loss on bond retirement Retained earnings Balance Transaction Noncash Assets Liabil N/A 2. 3. Check Previous Save Answers