Question
Mos Motor Corp. issued $430,000 of 4%, 5-year bonds on April 1, 2021. Interest is payable semi-annually on April 1 and October 1. On April
Mos Motor Corp. issued $430,000 of 4%, 5-year bonds on April 1, 2021. Interest is payable semi-annually on April 1 and October 1. On April 1, 2023, immediately after making and recording the semi-annual interest payment, Mos redeemed the bonds. Below is a partial amortization schedule for the first few years of the bond issue.
What is the bonds face value?
| Mo's Motor Corp. Bond Discount Amortization Schedule | |||||||||
| Interest Period | Interest Payment | Interest Expense | Amortization | Bond Amortized Cost | |||||
| 01-Apr. | 2021 | $411,183.06 | |||||||
| 01-Oct. | 2021 | $8,600.00 | $10,279.58 | $1,679.58 | 412,862.64 | ||||
| 01-Apr. | 2022 | 8,600.00 | 10,321.57 | 1,721.57 | 414,584.21 | ||||
| 01-Oct. | 2022 | 8,600.00 | 10,364.61 | 1,764.61 | 416,348.82 | ||||
| 01-Apr. | 2023 | 8,600.00 | 10,408.72 | 1,808.72 | 418,157.54 | ||||
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How To Audit ISO 9001 2015 A Handbook For Auditors
Authors: Chad Kymal
1st Edition
087389927X, 978-0873899277
