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hey, this is the set up of the table. Hope it helps Interest Interest Discount Amortization Payment Expense Semiannual Interest Date Mar 31, 2019 Sep
hey, this is the set up of the table. Hope it helps
Interest Interest Discount Amortization Payment Expense Semiannual Interest Date Mar 31, 2019 Sep 30, 2019 Mar 31, 2020 Sep 30, 2020 Discount Account Balance 100,944 97,891 94,686 Bond Carrying Amount 439,056 442,109 18,900 18,900 18,900 21,953 22,105 22,266 3,053 3,205 445,314 3,366 91,320 448,680 Afarian Corporation issued $700,000 of 6%, 10-year bonds payable on January 1, 2019. The market interest rate at the date of issuance was 4%, and the bonds pay interest semiannually (on June 30 and December 31). Afarian Corporation's year-end is June 30. Afarian prepared an effective-interest amortization table for the bonds through the first three interest payments as follows: (Click the icon to view the amortization schedule.) Read the requirements 1. How much cash did Afarian Corporation borrow on January 1, 2019? How much cash will Afarian Corporation pay back at maturity? Afarian borrowed $ on January 1, 2019. The company will pay back $ at maturity Requirements Use the amortization table for Afarian Corporation's bonds to answer the following questions: 1. How much cash did Afarian Corporation borrow on January 1, 2019? How much cash will Afarian Corporation pay back at maturity? 2. How much cash interest will Afarian Corporation pay each six months? 3. How much interest expense will Afarian Corporation report on June 30, 2019, and on December 31, 2019? Does the amount of interest expense increase or decrease each period? Why? Print DoneStep by Step Solution
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