Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Help Me ASAP. I have marked the wrong answers. Mathieson Co. issues a $17,000,000, 8.5% bond on 1 October 20X4. At this time, market interest
Help Me ASAP. I have marked the wrong answers.
Mathieson Co. issues a $17,000,000, 8.5% bond on 1 October 20X4. At this time, market interest rates are in the range of 8%. The bond had a 10-year life from 1 October 20X4, and paid interest semi-annually on 31 March and 30 September. (PV of $1. PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1.Calculate the proceeds that would be raised on bond issuance. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Answer is complete and correct. Proceeds from bond issuance $ 17,577,6436 2. Prepare an amortization table using the effective interest method of amortization Complete the first four payments only. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Answer is complete and correct. Cash Interest Dorp Period Interest Closing Not Paid Expense Amortization Bond Liab. , balance $ 17,577,643 1 $ 722,500 $ 703,106 19,394 5 17.558, 249 2 $ 722,500 $ 702,330 20,1700 $ 17.538 079 3 $ 722,500 $ 701,523 $ 20,9770 $ 17,517102 $ 722,500 $ 700,6840 21,816 $ 17,495 286 WN 4 3. Prepare journal entries for 20x4 and 20X5, using the effective interest method. ABC has a 31 December fiscal year- end. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Answer is complete but not entirely correct. Date General Journal Debit Credit 1 October 20X4 Cash 17,577 643 Premium on bonds payable 577,643 Bonds payable 17,000,000 No 1 2 31 December 2Interest expense Premium on bonds payable Interest payable 351,553 9.697 361,250 3 31 March 20x5 Interest payable Interest expense Premium on bonds payable Cash OOO 361,250 341,856X 19,3948 722,500 4 30 September 2 Interest expense Premium on bonds payable Cash 702,330 20,170 OO 722,500 5 31 December 2Interest expense Premium on bonds payable Interest payable 351,165X 10,0858 361 250
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started