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EXERCISE 1 On January 1 , 2 0 2 4 , a company issues a $ 2 , 5 0 0 , 0 0 0
EXERCISE
On January a company issues a $year bonds that pays
semiannual interest on July and January
Assume the bonds were selling at:
A
B
Instructions:
For A and B journalize the issuance of the bonds.
Journalize the first and second interest payment, using straight line
amortization.
Using Excel compute the bonds price present value assuming the following
market interest:
A
B
Use Excel to prepare two amortization tables for the bonds A and B using the
effective interest method.
Use the following columnar headings:
Year, Payment, Interest Expense, DiscountPremium Amortization, Unamortized
DiscountPremium Amortization and Carrying Value.
Journalize the following entries:
A Issuance of the bonds
B First two interest payment
EXERCISE
Assume that you are going to buy a car and finance it with Oriental Bank. The car has a
price of $ a market interest rate is and a loan term of years.
Instructions:
A Calculate the car monthly payment.
B Prepare the amortization table for the loan term.EXERCISE
On January a company issues a $year bonds that pays
semiannual interest on July and January
Assume the bonds were selling at:
A
B
Instructions:
For A and B journalize the issuance of the bonds.
Journalize the first and second interest payment, using straight line
amortization.
Using Excel compute the bonds price present value assuming the following
market interest:
A
B
Use Excel to prepare two amortization tables for the bonds A and B using the
effective interest method.
Use the following columnar headings:
Year, Payment, Interest Expense, DiscountPremium Amortization, Unamortized
DiscountPremium Amortization and Carrying Value.
Journalize the following entries:
A Issuance of the bonds
B First two interest payment
EXERCISE
Assume that you are going to buy a car and finance it with Oriental Bank. The car has a
price of $ a market interest rate is and a loan term of years.
Instructions:
A Calculate the car monthly payment.
B Prepare the amortization table for the loan term.
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