Question
Golf World, Inc., issued $320,000 par value 9% five-year bonds dated January 1, 2018 that will pay interest semiannually on June 30 and December 31.
Golf World, Inc., issued $320,000 par value 9% five-year bonds dated January 1,
2018 that will pay interest semiannually on June 30 and December 31. These bonds were issued
at $332,989. The annual market rate is 8% on the issue date.
How can complete for 4 and 5 requirement information from above: Please including formulas and calculation.
4. Golf World decided to retire the bonds early on January 1, 2020, at 105. Prepare the necessary journal entries to record this early retirement.
5. Prove your numbers provided in the problem are correct by showing the table values you would have used to calculate this manually. This is how you will show your work, proving the Excel formulas were used correctly.
| GOLF WORLD | FIVE-YEAR BOND | DATE | Beginning Carrying Value | Cash Interest | Interest Expense | Amortize Now | Unamortized Premium | Ending Carrying Value | ||||
| Bond face value | 320,000 | 2018 | Jan 1 | |||||||||
| Years | 5 | June 30 | ||||||||||
| Contract rate | 9% | Dec 31 | ||||||||||
| Market rate | 8% | 2019 | June 30 | |||||||||
| dollar values | table values | PV | . | Dec 31 | ||||||||
| PRINCIPAL | 2020 | June 30 | ||||||||||
| INTEREST | Dec 31 | |||||||||||
| n = | 10 | - | 2021 | June 30 | ||||||||
| i = | 4% | Dec 31 | ||||||||||
| 2022 | June 30 | |||||||||||
| Dec 31 | ||||||||||||
| ADD EXCEL TOOLS REQUIREMENTS HERE | ||||||||||||
| PV | ||||||||||||
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