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Banting Best Pharmaceuticals Ltd. is a large commercial insulin producer, with a number of manufacturing facilities across Canada. To finance the additional real estate
Banting Best Pharmaceuticals Ltd. is a large commercial insulin producer, with a number of manufacturing facilities across Canada. To finance the additional real estate and production facilities necessary to meet the increasing global demand for the company's products, the company decided to issue bonds. On May 1, 2020, it issued 20-year, semi-annual bonds with a face value of $92,000,000. The contract rate on the bonds was 10.3% and the bonds were issued at 94.4 to yield 11.0%. Interest payments are to be made each October 31 and April 30. (a) Determine the missing amounts in the bond amortization schedule below: (Round answers to 0 decimal places, e.g. 125.) Interest Payment Date May b ) Balance Interest Expense Amortization of Bond Discount of Bond Discount 1, $5,152,000 2020 Oct. 31, $ (2) $4,776,640 $38,640 $5,113,360 2020 Apr. 30, $4,738,000 $ (3) $40,765 $5,072,595 2021 Oct. 31, $4,738,000 $4,781,007 (4) $5,029,588 2021 Apr. 30, $4,738,000 $4,783,373 $45,373 $4,984,215 2022
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