Coney Island Entertainment issues $1,500,000 of 5% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when:

1.

The market interest rate is 5% and the bonds issue at face amount. (FV of $1, PV of $1, FVA of $1, and PVA of $1)

What is the issue price?

What is the cash paid, interest expense, increase in carrying value and carrying value for 6/30

What is the cash paid, interest expense, increase in carrying valye and carrying value for 12/31

2.

The market interest rate is 6% and the bonds issue at a discount. (FV of $1, PV of $1, FVA of $1, andPVA of $1)

What is the issue price?

What is the cash paid, interst expense, increase in carrying value and carrying value for 6/30?

What is the cash paid, interest expense, increase in carrying value and carrying value for 12/31?

3.

The market interest rate is 4% and the bonds issue at a premium. (FV of $1, PV of $1, FVA of $1, andPVA of $1) What is the issue price? What is the cash paid, interest expense, increase in carrying value and carrying value for 6/30? What is the cash paid, interest expense, increase in carrying value and carrying value for 12/31?