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please use excel Journalize the following bond transactions. Assume the company produces financial reports on the quarter and accounts for long-term liability using the effective
please use excel
Journalize the following bond transactions. Assume the company produces financial reports on the quarter and accounts for long-term liability using the effective interest rate method. Eastmain River Company 1) On January 1, 2022 the company issues 10 year bonds with a stated interest rate of 5% and prevailing market rate of 6.18%. The maturity value of the bonds is $100000 and were issued at 95.82. Bond interest payments are issue quarterly on the last day of the quarter. A. Journalize the issuance of these bonds on January 1, 2022. B. Journalize the payment of the 1st interest payment on March 30, 2022. C. What is the carrying value of the bond on April 1, 2022. 2) On January 1,2022 the company issues 20 year bonds with a stated interest rate of 7% and prevailing market rate of 6.93%. The maturity value of the bonds is $200000 and were issued at 106.93. Bond interest payments are issue quarterly on the last day of the quarter. A. Journalize the issuance of these bonds on January 1, 2022. B. Journalize the payment of the 1st interest payment on March 30, 2022. C. What is the carrying value of the bond on April 1, 2022. CHECK FIGURE 310,115.54 This is the carrying value of the two bonds on April 1st NOTE: I calculated cash with calculation at 4 digits of rounding. Final cash was round to the penny. I calculated interest at 2 digits of rounding. ( 4 digits after the decimal) Interest then rounded to the penny Step by Step Solution
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