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I need help with this, please! Thank you!! Mindsetta Music Inc. issued bonds on March 1, 2020, with a par value of $410,000. The bonds
I need help with this, please! Thank you!!
Mindsetta Music Inc. issued bonds on March 1, 2020, with a par value of $410,000. The bonds mature in 15 years and pay 13.50% annual interest in two semiannual payments. On the issue date, the annual market rate of interest for the bonds turned out to be 14%. (Use Table 14A.1 and Table 14A.2.) (Use appropriate factor(s) from the tables provided.) a. What is the size of the semiannual interest payment for these bonds? Size of semi-annual payment b. How many semiannual interest payments will be made on these bonds over their life? Number of payments c. Use the information about the interest rates to decide whether the bonds were issued at par, at a discount, or at a premium. Issued at a discount Issued at a premium Issued at par d. Estimate the market value of the bonds as of the date they were issued. (Round the final answers to the nearest whole dollar.) Cash Flow Table Value Amount Present Value Par value Interest (annuity) Total $ 0 e. Present the journal entry that would be made to record the bonds' issuance. (Round the final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 > Record the sale of bonds at a discount on the original issue date. Note: Enter debits before credits. Date General Journal Debit Credit Mar 01, 2020Step by Step Solution
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