Hi,

I need help solving the question in the file attached. some explanation will be highly appreciated.

Thank you in advance

LUCK Corporation issued bonds and received cash in full for the issue price. The bonds were issued on January 1, 2011. The stated interest rate was payable at the end of each year. The bonds mature at the end of 4 years. The following amortization table has been set up: Date January 1, 2011 End of year 2011 End of year 2012 End of year 2013 End of year 2014 Cash ...... $450 450 450 450 Interest ...... $427 ? ? ? ..... $23 ? ? ? Amortization CV $6,101 6,078 6,053 ? 6,000 Required: a. b. c. d. e. Complete the amortization table What was the maturity amounts of the bonds? How much cash was received at date of issuance of the bonds? Was there a premium or discount? If so, which and how much? How much cash will be disbursed for interest each period and in total for the full life of the bond issue? f. What is the stated rate of interest? g. What is the effective rate of interest? h. What amount of interest expense should be reported on the income statement each year