Question
Bonds Payable Series 2 On January 1, Y6, the company issued $2,930,000, 5% bonds with a 10-year maturity. The bonds were issued to investors that
- Bonds Payable Series 2
On January 1, Y6, the company issued $2,930,000, 5% bonds with a 10-year maturity. The bonds were issued to investors that require an effective interest rate of 7.50%. The accountant did NOT record the issuance of these bonds. Interest is paid annually and the accountant did NOT record the interest payment transaction. The effective interest method is used to amortize any premium or discount.
NOTE round calculations to nearest dollar.
In the Excel spreadsheet, see the tab labelled Bonds Payable Series 2 to make any calculations, including an amortization schedule, to support journal entries. Please do any required calculations and create journal entry for issuance of the bonds.
| Present Value Calculation & Amortization Schedule | |||||
| PV | |||||
| Rate | |||||
| Nper | |||||
| Pymt | |||||
| FV | |||||
| Type | |||||
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Auditing and Assurance Services
Authors: Timothy Louwers, Allen Blay, David Sinason, Jerry Strawser, Jay Thibodeau
7th edition
978-1259573286, 1259573281, 978-1260152166
