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Calculations Marketing Inc. issued 9 . 0 % bonds with a par value of $ 3 6 0 , 0 0 0 and a five
Calculations Marketing Inc. issued bonds with a par value of $ and a fiveyear life on January for
$ The bonds pay interest on June and December The market interest rate was on the original issue
date. Use TABLE A and TABLE AUse appropriate factors from the tables provided.
Required:
Calculate the total bond interest expense over the life of the bonds.
Total interest
tableTotal interesexpense
Prepare an amortization table using the effective interest method. Do not round intermediate calculations. Round
Prepare an amortization table using the effectical the final answers to the nearest whole dollar.
Show the journal entries that Calculations Marketing Inc. would make to record the first two interest payments
assuming a December yearend. Do not round intermediate calculations. Round the final answers to the nearest
whole dollar.
Show the journal entries that Calculations Marketing Inc. would make to record the first two interest payments
assuming a December yearend. Do not round intermediate calculations. Round the final answers to the nearest
whole dollar.
Use the original market interest rate to calculate the present value of the remaining cash flows for these bonds as of
December 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.
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