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Prepare a bond amortization schedule from the date of issue up to and including January 1, 2026. (Round answers to 0 decimal places, e.g. 5,275.)
Prepare a bond amortization schedule from the date of issue up to and including January 1, 2026. (Round answers to 0 decimal places, e.g. 5,275.)
CARLA VISTA LTD. Bond Premium Amortization Table Effective Interest MethodSemi-Annual Interest Payments 5% Bonds Issued at market rate of 4% | ||||||||
Date | Interest Payment | Interest Expense | Premium Amortization | Bond Amortized Cost | ||||
Jan. 1, 2024 | $ | $ | $ | $ | ||||
July 1, 2024 | ||||||||
Jan. 1, 2025 | ||||||||
July 1, 2025 | ||||||||
Jan. 1, 2026 |
On January 1,2024 , Carla Vista Ltd. issued bonds with a maturity value of $7.30 million when the market rate of interest was 4%. The bonds have a coupon (contractual) interest rate of 5% and mature on January 1,2034 . Interest on the bonds is payable semi-annually on July 1 and January 1 of each year. The company's year end is December 31. Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1 Calculate the issue price of the bonds. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer to 0 decimal places, e.g. 5,275.) Issue price $
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