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On January 1, 2019, Worldwide Logistics issued 2-year bonds, with par value $1,000,000, for $964,541. The bonds carry 8% annual contract rate and interest is
On January 1, 2019, Worldwide Logistics issued 2-year bonds, with par value $1,000,000, for $964,541. The bonds carry 8% annual contract rate and interest is paid on June 30 and December 31. The bonds annual market rate is 10% at the date of issue. Required: Based on the above information, compute the items (a) to (f) as indicated below and write your answers on the answer book. (8 marks) Cash Interest Paid Interest Expense Discount Amortization Semiannual Interest period Jan 1, 2019 Jun 30, 2019 Dec 31, 2019 Unamortized Discount (a) Carrying Amount (b) (e) (h) (c) (d) (Note: Round the amount to the nearest dollar)
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