Calibri General 87 012 H 4 On January 1, 2022, Cookie Ltd. issued seven year, 4% bonds with a face value of $800,000. The bonds provide the bondholders a 3% yield and pay interest semi-annually on July 1 and January 1. The company follows IFRS, has an August 31 year-end, and uses the effective interest method to 3 amortize any discount or premium. REQUIRED (1). Calculate the bond issue price, state whether the bond is issued at a premium or discount and state the premium or discount amount in positive terms). Round issue price to nearest whole dollar (o decimals) using the ROUND formula. The ly or rate can be entered as a decimal or whole number 5 7 Bond Issue price Premium or Discount? Premium or Discount Amount ($)2 8 State positivel in 9 10 PMT 31 Vy or rate 2 FV *ROUND TO O decimals (2). Complete the bond amortization table for the first two interest payments. Round interest expense to the nearest whole dollar (O decimals) using the ROUND formula. State all amounts in positive numbers! Use cell referencing to input values above in requirement (1). The amortization schedule should be prepared in positive numbers similar to what we did in class. Amortization Carrying Date Interest Payment Interest expense *ROUND amount value Interest Cover Sheet Q1 Q2 Q3 04 05 06 + fon Mode: Automatic Workbook Statistics Calibri 12 B 29 General D12 fi B G State positive! in 9 10 PMT 11 Vy or rate 12 FV PV ROUND to O decimals 13 15 (2). Complete the bond amortization table for the first two interest payments. Round interest expense to the nearest whole dollar (O decimals) using the ROUND formula. State all amounts in positive numbers. Use cell referencing to input values above in requirement (1). The amortization schedule should be prepared in positive numbers similar to what we did in class. 6 Amortization Carrying Date Interest expense Interest Payment *ROUND amount value interest 1-Jan-22 expense to o 1-Jul-22 decimals 1-Jan-23 END OF QUESTION 2