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please right it as A,B,c,D,E Assignment 2 The following amortization and interest schedule reflects the issuance of 10-year bonds by Capulet SpA on January 1,
please right it as A,B,c,D,E
Assignment 2 The following amortization and interest schedule reflects the issuance of 10-year bonds by Capulet SpA on January 1, 2013, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statements are prepared once yearly Amortization Schedule Year Cash Interest Amount Unamortized Book Value 1/1/2013 5,651 94,349 2013 11,000 11,322 5,329 94,671 2014 11.000 11,361 4.968 95,032 2015 11.000 11.404 4,564 95,436 2016 11.000 11,452 4,112 95,888 2017 11.000 11.507 3,605 96,395 2018 11,000 11,567 3,038 96,962 2019 11,000 11,635 2.403 97,597 2020 11,000 11,712 1,691 98,309 2021 11,000 11.797 894 99,106 2022 11.000 11.894 100,000 Instructions a. Indicate whether the bonds were issued at a premium or a discount and how you can determine this fact from the schedule. (20 points) b. Determine the stated interest rate and the effective-interest rate. (20 points) c. On the basis of the schedule, prepare the journal entry to record the issuance of the bonds on January 1, 2013. (20 points) d. On the basis of the schedule, prepare the journal entry or entries to reflect the bond transactions and accruals for 2013. (Interest is paid January 1.) (20 points) ZUT TUVU 11,304,900 YO,032 2015 11,000 11.404 4,564 95,436 2016 11,000 11,452 4,112 95,888 2017 11.000 11.507 3,605 96,395 2018 11,000 11,567 3,038 96,962 2019 11.000 11.635 2,403 97,597 2020 11,000 11,712 1,691 98,309 2021 11,000 11.797 894 99,106 2022 11,000 11,894 100,000 Instructions a. Indicate whether the bonds were issued at a premium or a discount and how you can determine this fact from the schedule. (20 points) b. Determine the stated interest rate and the effective-interest rate. (20 points) c. On the basis of the schedule, prepare the journal entry to record the issuance of the bonds on January 1, 2013. (20 points) d. On the basis of the schedule, prepare the journal entry or entries to reflect the bond transactions and accruals for 2013. (Interest is paid January 1.) (20 points) e. On the basis of the schedule, prepare the journal entry or entries to reflect the bond transactions and accruals for 2020. Capulet does not use reversing entries. (20 points) Step by Step Solution
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