Date: October 6, 2018 ACC 102-FALL 2018 ning behind the figures. YOU MUST SHOW YOUR WORK IN Please use excel worksheet, format the cells properly and ensure you understand the reaso SYSTEMATIC ORDER TO RECEIVE FULL CREDIT 600,000 callable bond on January 1, 2015. The coupon rate is 12% and the market interest rate is 8%. The on January Warwick Manufacturing Co. issued a five (5) year d certificate indicates that interest is paid quarterly on April 1, July, 1, September 1 and January 1. 10 (a) Use the present value tables to calculate the issue price of the bond as an amount (b) Calculate the issue price as a percentage (c) Prepare the amortization schedule for the five yearsksing the straight line method (d) Prepare the amortization schedule for the flive years using effective interest rate method (e) Make journal entries to record i (t) Make journal entries to record interest expense (9) Prepare a partial balance sheet as of December 1, 2018 showing both the current and long 10 10 10 10 entries to record interest expense for 2015 under the straight line method. Record the payment of interest on for 2016 under the effective interest rate method. Record the payment of interest on January 1, 2017 term liabilities section of the balance sheet using figures from the effective 10 interest rate method. For questions 2 and 3 use calculations from the effective interest rate method 2 On July 1, 2019 w ick called and retired half (S0% of the bonds at 102. Make the 10 mal entry to record the retirement of the bonds 10 On December 31, 2020 31, 2020 Warwick called and retired the outstanding bonds at 98. Make the journal entry to record the , 2016. Everest pays interest on January t and 1. Everest Corporation sold $100,000 of 5% 8 year bonds for face value on Apni , 2016 instead of on January i B each year a. Prepare the journal entries to record the sale of the bonds on Apnil 1, 2016 Prepare the journal entry to record the first semi-annual interest payment on July 1, 2016 c. Show the bond interest expense in T account form on July 1, 2016 100 44 Sheet1 Sheet2 Sheet3+ Im Normal View Sum 0