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I only need the answer for H-R for now! 5. (10 points) Daniels Inc. purchased $100,000,000 in bonds (face value) from Cohn Company, at issuance,
I only need the answer for H-R for now!
5. (10 points) Daniels Inc. purchased $100,000,000 in bonds (face value) from Cohn Company, at issuance, on January 1, 2017. The bonds mature on 1/1/2022 and pay annual interest on 12/31 each year. Prepare the problem using the assigned assumptions (a -c) below: Calculate the issue price if the terms are as follows: a. Yield 8%. Coupon rate 10% (last names A-G) b. Yield 8%, Coupon rate 6% (last names H-R) c. Yield 6%, Coupon rate 5% (last names S - Z) a. Prepare the journal entries at purchase for Daniels Inc. and issuance for Cohn Company. b. Prepare an amortization table using the effective interest rate for Daniels Inc. and Cohn Company. c. The fair value of the bonds are as follows: 2017 - $100,000,000 2018 - $99,500,000 2019 - $ 101,500,000 Prepare the journal entries for Daniels Inc. for the interest and to adjust the balance sheet at each of Dec. 31 for 2017, 2018 and 2019 under the following categories: d1. Held to maturity classification d2. Available for sale d3. TradingStep by Step Solution
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