Question
On January 1, 2020, Dolphins Corp. issued ten-year, 12% bonds with a face value of $ 500,000, with interest payable semi-annually on June 30 and
On January 1, 2020, Dolphins Corp. issued ten-year, 12% bonds with a face value of $ 500,000, with interest payable semi-annually on June 30 and December 31. At the time, the market rate was 10%. Dolphins follows IFRS and the effective interest rate method.
Instructions
- Calculate the issue price of the bonds. Round the answer to the nearest dollar.
Independent of your solution to part a), assume that the issue price was $ 562,000, prepare the amortization table for 2020, 2021 and 2022. Provide proper titles and format and you may round all values to the nearest dollar.
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Managerial Accounting
Authors: Cataldo Cpa II, Cma Cgma A J
2nd Edition
1634929241, 978-1634929240
