Just part B. 8% rate

Just part B. 8% rate

Chapter 14 Class Exercise On January 1, 2014, Rahman Co. issued five-year bonds with a face value of $100,000 and a bonds were sold to yield (a) 10%; (b) 8%; and (c) 12%. Required: (For all three cases) 1. Compute the amount of cash Rahman Co. received on 1/1/2014. interest rate of 10%, payable semiannually on June 30 and December 31 . Assume that the Prepare an amortization table for 2014 through 2018 for the bonds. Assume amortization is recorded on interest payment dates. 2. 3. Give all journal entries Rahman Co. entered for the years 2014 through 2019. 4. Show how the bonds were shown on the financial statements of Rahman Co. on 12/31/2014 and 12/31/2015. Do not forget to show income statement effects. What will be the maturity value of the bonds on 1/1/2019? 5