Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with this question please. Quatro Company issues bonds dated January 1, 2021, with a par value of $740,000. The bonds' annual contract

I need help with this question please.
image text in transcribed
image text in transcribed
Quatro Company issues bonds dated January 1, 2021, with a par value of $740,000. The bonds' annual contract rate is 13%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of Issuance is 12%, and the bonds are sold for $758.222. 1. What is the amount of the premium on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare an effective interest amortization table for these bonds. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 Prepare an effective interest amortization table for these bonds (Round all amounts to the nearest whole dollar) Semiannual Cash Bond Interest Interest Premium Un mortized Interest Carrying Perlod End Paid Amortization Expense Premium Value 01/01/2021 18.222 758 222 06/30/2021 S 48,100 45063 3037 15,185 755,1853 12/31/2021 48 100 45063 3037 12,148 % 752 148 06/30/2022 48, 100 45,063 3.037 9111 749,111 12/31/2022 18100 45003 0074 749,109 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an effective interest amortization table for these bonds. (Round all amounts to the nearest whole dollar. Cash Interest Paid Bond Interest Expense Premium Amortization Unamortized Premium Carryint Value S Semiannual Interest Period-End 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 06/30/2023 $ 48,100 48,100 48,100 48,100 48,100 48, 100 S 288,600 O $ 45,063 % s 45,063 45,063 % 45,063 % 45,063 X 38,995 $ 270,378 $ 18,222 $ 15,185 % 12,148 9,111 6,074 % 3,037 3,037 3,037 % 3,037 3% 3 X 9.105 18,222 X X X 758 222 755,185 752,148 % 749, 111 749, 108 749, 105 740,000 X X 0 12/31/2023 Total

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bond Credit Analysis Framework And Case Studies

Authors: Frank J. Fabozzi

1st Edition

9781883249915

More Books

Students also viewed these Accounting questions