Question
On June 30, 2018, the market interest rate is 5%. Goal Corporation issues $800,000 of 10%, 15-year bonds payable. The bonds pay interest on June
On June 30, 2018, the market interest rate is 5%. Goal Corporation issues $800,000 of 10%, 15-year bonds payable. The bonds pay interest on June 30 and December 31. The company amortizes bond premium using the effective-interest method.
Requirement1. Use the PV function in Excel to calculate the issue price of the bonds.
Requirement2. Prepare a bond amortization table for the first four semiannual interest periods.
Requirement3. Record the issuance of bonds payable on June 30, 2018; the payment of interest on December 31, 2018; and the payment of interest on June 30, 2019.
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Audit Effectiveness Meeting The IT Challenge
Authors: Kamil Omoteso
1st Edition
1409434680, 978-1409434689
