Question
January 1, 2018: Nexxon corporation issued 20 year, 9% bonds with a face value of $2,000,0000. the bonds were sold to yield 10%. Interest is
January 1, 2018: Nexxon corporation issued 20 year, 9% bonds with a face value of $2,000,0000. the bonds were sold to yield 10%. Interest is payable semi-annually on january 1 and July 1. Effective rate amortization is to be used.
1. what is the issue price of the bonds?
2. Using EXCEL, prepare an amortization table for the entire bond term.
3. Record the bond issuance on 1/1/18
4. assume the company prepares financial statements semi-annually on June 30 and Decemeber 31. Prepare the appropriate adjusting entries for June 30, 2018 and December 31, 2018 for interest and for amortization of the discount or premium.
6/30/18
12/31/18
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