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could someone please help me with this problem? P9-5A On January 1, 2021. Vacation Destinations issues $40 million of bonds that pay interest semiannually on
could someone please help me with this problem?
P9-5A On January 1, 2021. Vacation Destinations issues $40 million of bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: (1) (5) (2) Cash Paid for Interest (3) (4) Interest Expense Increase in Carrying Value Date Carrying Value $37,281,935 1/1/2021 6/30/2021 12/3Y/2021 $1,400,000 $1.491,277 $91,277 37.373,212 1.400,000 1.494,928 94,928 37,468,140 Required: 1. Were the bonds issued at face amount, a discount, or a premium? 2. What is the original issue price of the bonds? 3. What is the face amount of the bonds? 4. What is the stated annual interest rate? 5. What is the market annual interest rate? 6. What is the total cash paid for interest assuming the bonds mature in 10 years? Prepare a bond amortization schedule and record transactions for the bond issuer (LO9-5) Step by Step Solution
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