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On January 1, 2022, Tony Technology, Incorporated issued $750,000 of $1,000 par value, 5%,6-year bonds. Interest is payable semiannually each January 1 and July 1
On January 1, 2022, Tony Technology, Incorporated issued $750,000 of $1,000 par value, 5%,6-year bonds. Interest is payable semiannually each January 1 and July 1 with the firs interest payment due at the end of the period on July 1, 2022. The market rate of interest for similar nonconvertible bonds on the date of the bond issue was 8%. However, because these bonds are convertible, the effective rate is 6%. Each bond is convertible into 30 shares of Tony Technology's $1 par value common stock. . Future Value of an Ordinary Annuity table Future Value of an Annuity Due table Present Value of $1 table Present Value of an Ordinary Annuity table Present Value of an Annuity Due table Read the Requirement b. Prepare the amortization table for the bond issue through January 1,2025, assuming that Tony Technology uses the effective interest rate method of amortization. (Round each calculation to the nearest whole number and then use the rounded value for each subsequent calculation in the table.)
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