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OU On December 31, 2021, Mainland Corporation issues 6%, 10-year convertible bonds payable with a face value of $4,000,000. The semiannual interest dates are June
OU On December 31, 2021, Mainland Corporation issues 6%, 10-year convertible bonds payable with a face value of $4,000,000. The semiannual interest dates are June 30 and December 31. The market interest rate is 8% Mainland amortizes bond discounts using the effective-interest method Read the fequirements Requirement 1. Use the PV function in Excel to calculate the issue price of the bonds. (Round your answer to the nearest whole dollar) The issue price of the bonds is $ 3,456,387 Requirement 2. Prepare an effective interest method amortization table for the first four semiannual interent periods. (Round your answers to the nearest whole dollar) Mainland Corporation Amortization Table Semiannual Discount Account Bond Carrying Interest Date Payment Interest Expense Amortization Balance Amount Interest Discount 12-31-2021 V full Requirements ds is an eff 1. 2. ers to th 3. terest aymen Use the PV function in Excel to calculate the issue price of the bonds. Prepare an effective-interest method amortization table for the first four semiannual interest periods. Journalize the following transactions: a. Issuance of the bonds on December 31, 2021. Credit Convertible Bonds Payable. b. Payment of interest and amortization of the bond discount on June 30, 2022 c. Payment of interest and amortization of the bond discount on December 31, 2022 Print Done
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