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Homework, Please help and the please the work B C D E F G H J Obviously Corporation Inc., is considering the sale of Option
Homework, Please help and the please the work
B C D E F G H J Obviously Corporation Inc., is considering the sale of Option A $500,000 bond issue. The bond pays semiannual interest of $25,000 and is due in 10 years. Option A bond issue date is January 1, 2015. Interest payment dates are June 30 and December 31. The bonds are sold to yield 12%. Table Values are as follows: Present value of 1 for 10 periods at 10% Present value of 1 for 10 periods at 121 Present value of 1 for 20 periods at 51 Present value of 1 for 20 periods at 68 Present value of annuity for 10 periods at 10% Present value of annuity for 10 periods at 128 Present value of annuity for 20 periods at 58 Present value of annuity for 20 periods at 64 0.38554 0.32197 0.37689 0.31180 6.14457 5.65022 12.46221 11.46992 1 Calculate the selling price of Option A bond issue in dollars. Show your work. (20 points) 2 Calculate the selling price of Option A bond issue as a percentage. Show your work. (10 points) 3 Prepare the journal entry to record the bond issue. (5 points) 4 Prepare the amortization schedules for the bond issue for years 2015 and 2016 using the effective interest method. (40 points) 5 Prepare journal entries to record the Interest expense for calendar year 2016. (10 points) 6 On January 1, 2017 Obvious retired 60% of the bond @ 90. Calculate the gain or loss on the retirement. (10 points) 7 (5 points) Prepare the journal to record the bond retirement Step by Step Solution
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