Homework: Ch 9 Homework Score: 0 of 6 pts 4 of 5 (2 complete) HW Score: 30.67%, 6.13 of P9-59B (similar to) Question Help The notes to the Friendship Ltd. financial statements reported the following data on December 31. Year 1 (end of the fiscal year! Click the icon to view the financial statement data) Friendship amortizes bond discounts using the effective-Interest method and pay all interest amounts at December 31 Read the requirements Requirement 1. Anume the market interest rate in 5% on January 1 of year 1, the date the bonds are issued (Round your answers to the nearest whole dolu) Using the PV function in Excel, what is the issue price of the bonds? Sup Enter any number in the edit fields and then click Check Answer 10 Clear All Check Answer parts romaning Read the requirements. , . a. Using the PV function in Exce, what is the issue price of the bonds? The issue price of the bonds is $ Enter au moins the artit fields and then click Check Answer i Data Table x Note 6. Indebtedness .... $5,000,000 ? ? Bonds payable, 1% due on December 31, Year 8 Less: Discount Notes payable, 6%, payable in $50,000 annual installments starting in Year 5 300,000 di Print Done Chec Requirements a. 1. Assume the market interest rate is 5% on January 1 of year 1, the date the bonds are issued. Using the PV function in Excelwhat is the issue price of the bonds? b. What is the maturity value of the bonds? What is Friendship's annual cash interest payment on the bonds? d. What is the carrying amount of the bonds at December 31, year 1? 2. Prepare an amortization table through December 31, Year 4 for the bonds. (Round all amounts to the nearest dollar) How much is Friendshin's interest expense on the hands for C. Print Done hock A 1 Requirements a. Using the PV function in Excel", what is the issue price of the bonds? b. What is the maturity value of the bonds? C. What is Friendship's annual cash interest payment on the bonds? d. What is the carrying amount of the bonds at December 31, year 1? 2. Prepare an amortization table through December 31, Year 4 for the bonds. (Round all amounts to the nearest dollar.) How much is Friendship's interest expense on the bonds for the year ended December 31. Year 4? 3. Show how Friendship would report these bonds and notes at December 31, Year 4. ed Print Done