Question
On Jan 1, 2015, Sun Company issued a $6,000,000, 8% (payable semiannually), 5 year, bond when the market rate was 6%. Requirements: a. For how
On Jan 1, 2015, Sun Company issued a $6,000,000, 8% (payable semiannually), 5 year, bond when the market rate was 6%. Requirements: a. For how much the bond was issued on Jan 1, 2015? Show your calculation. b. Fill in the following 2015 2020 amortization table (the Sun).
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c. What is the interest expense that the Sun Company should report in its 2017 income statement? d. What is the carrying value of the bond that the Sun Company should report on its Dec 31, 2018 balance sheet? e. If on Jan 1, 2018, the Sun called 50% of its bond and retired it at 104, what is the gain or loss on the bond retirement that the Sun Company should recognize and where it should be reported in its 2018 multistep income statement?
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