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Please help with my homework - will rate On January 1, 2021, Oriole Co. issued ten-year bonds with a face value of $5,800,000 and a
Please help with my homework - will rate
On January 1, 2021, Oriole Co. issued ten-year bonds with a face value of $5,800,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: Present value of 1 for 10 periods at 10% 0.386 Present value of 1 for 10 periods at 12% 0.322 Present value of 1 for 20 periods at 5% 0.377 Present value of 1 for 20 periods at 6% 0.312 Present value of annuity for 10 periods at 10% 6.145 Present value of annuity for 10 periods at 12% 5.650 Present value of annuity for 20 periods at 5% 12.462 Present value of annuity for 20 periods at 6% 11.470 Calculate the issue price of the bonds. Issue price of bond 5,135,900 Without prejudice to your solution in part (a), assume that the issue price was $5,127,200. Prepare the amortization table for 2021, assuming that amortization is recorded on interest payment dates using the effective-interest method. Expense Amortization Carrying Amount 1/1/18 Date Cash 6/30/18 $ 12/31/18Step by Step Solution
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