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Please do Part 1&2 and include the steps with the answers (it's going to be on excel thats why i need the steps) Part 1
Please do Part 1&2 and include the steps with the answers (it's going to be on excel thats why i need the steps)
Part 1 -- Bonds: 1. National Company issued 6% bonds, dated January 1, with a face amount of $700,000 on January 1, 2019. The bonds are of 8-year duration and mature on December 31, 2026. The market yield for bonds of similar risk and maturity was 4.5%. Interest is made semiannually on June 30 and December 31. REQUIRED: a. Determine the price of the bonds at January 1, 2019 (be certain to include all of the "Given" information as discussed in class). b. Prepare a bond amortization table using the effective interest method (as reviewed in class), and make certain to obtain totals for the columns of Cash Interest Paid, Interest Expense, and Premium Amortization. c. Prepare the journal entry to record their issuance by National Company on January 1, 2019. d. Prepare the journal entry recording the first interest payment on June 30, 2019. e. Prepare the journal entry recording the interest payment on December 31, 2019. f. Prepare journal entries at maturity on December 31, 2026. & Prepare the journal entry to record the retirement of the bond at a call price of $726,000 on January 1, 2024. h. Instead of retirement of the bond as described in "g" above, assume the bond was retired @105 call price on January 1, 2024. Prepare the journal entry to record this retirement of the bond. Part 2 -- Installment note: 2. On January 1, 2019 National Company signed a $600,000, 8% installment note to be repaid with 9 equal annual installments to be first made on December 31, 2019, and then every December 31 thereafter. REQUIRED: a. Determine the amount of each annual payment. b. Prepare an amortization table for this installment note as reviewed in class). c. Prepare the journal entry for the issuance of the installment note. d. Prepare the journal entry for the first payment on the note. IMPORTANT: You are to use four spreadsheets for the solutions to these two problems. The first sheet is for the Bond amortization table including the "Given" information and the determination of the value of the bond. The second sheet is for recording all of the journal entries for the bond. The third sheet is for the amortization table of the installment note including the "Given" information and the determination of the annual cash payments. The fourth sheet is for the journal entries for the installment note. Also, you need to label the sheets properlyStep by Step Solution
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