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Calculations Marketing Inc. issued 11.0% bonds with a par value of $540,000 and a five-year life on January 1, 2020. for $605.699. The bonds pay
Calculations Marketing Inc. issued 11.0% bonds with a par value of $540,000 and a five-year life on January 1, 2020. for $605.699. The bonds pay interest on June 30 and December 31. The market interest rate was 8% on the original issue date. Use TABLE 144.1 and TABLE 146.2. (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the total bond interest expense over the life of the bonds. Total interest expense 2. Prepare an amortization table using the effective interest method. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar.) Cash Interest Paid Period Interest Expense Premium Amort. Unamortized premium Carrying Value Period Ending Jan. 1/20 June 30/20 Dec. 31/20 June 30/21 Dec. 31/21 June 30/22 Dec. 31/22 June 30/23 Dec. 31/23 June 30/24 Dec. 31/24 Totals 0 0 S 0 S 0 S 0 3. Show the journal entries that Calculations Marketing Inc. would make to record the first two interest payments assuming a December 31 year-end. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar.) View transaction list Journal entry worksheet Record the six months' interest and premium amortization. Note: Enter debits before credits. General Journal Debit Credit Date June 30, 2020 Record entry Clear entry View general journal 4. Use the original market interest rate to calculate the present value of the remaining cash flows for these bonds as of December 31. 2022. Compare your answer with the amount shown on the amortization table as the balance for that date. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar.) Present value of the remaining cash flows
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