Name:Keiry Garcia

ACC$302$ Summer $2024$

Bond Excel Problem

GoodFoods, Inc issued $$760,000$ of its $20-$year, $8\%$ bonds on Janaury $1,2024.$

Bonds were priced to yield $10\%.$

GoodFoods uses the effective interest method to record its semi$-$annual interest payments.

$1.$ Calculate the semi$-$annual interest payment $30400$

$2.$ Pricing the bond Use Excel Formula!!

$3.$ Record the bond issuance

Debit Credit

$4.$ Prepare the amortization schedule through $12/31/26($not the full $20$ years$).$ Add or delete rows as necessary.

Date Cash Pmt Effective Interest Discount$/$Premium Amortization

Debit Credit

$5.$ Record June $30,2024$ interest payment

$6.$ Record December $31,2024$ interest payment

$7.$ On December $31,2024,$ the fair value of the bonds was $$636,000$ as determined by their market value. General risk$-$free rates did not change in $2024.$ Record the entry to adjust the bonds to fair value.

$8.$ Bond Carrying Value $($show all accounts names and amounts to arrive at carrying value$)$

$12/31/24$

$9.2024$ Total Interest Expense