Question
On June 30, 2016, the market interest rate is 4%. First Base Sports Ltd. issues $950,000 of 9%, 25-year bonds payable. The bonds pay interest
On June 30, 2016, the market interest rate is 4%. First Base Sports Ltd. issues $950,000 of 9%, 25-year bonds payable. The bonds pay interest on June 30 and December 31. First Base Sports Ltd. amortizes bond premium by the effective-interest method.
1. Use the PV function in Excel Superscript to calculate the issue price of the bonds.
2. Prepare a bond amortization table for the first four semiannual interest periods.
3. Record the issuance of bonds payable on June 30, 2016; the payment of interest on December 31, 2016; and the payment of interest on June 30, 2017.
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Cost Accounting
Authors: Edward B. Deakin, Michael Maher
3rd Edition
0256069190, 978-0256069198
