QS 14-17B Effective Interest: Bond discount computations LO PS Garcia Company issues 1000%, 15-year bonds with a par value of $330,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 14.00%, which implies a selling price of 77 12. The effective Interest method is used to allocate Interest expense 1. Using the implied selling price of 77 1/2, what are the issuer's cash proceeds from Issuance of these bonde? 2. What total amount of bond Interest expense will be recognized over the life of these bonds? 3. What amount of bond interest expense is recorded on the first interest payment date? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the implied selling price of 77 1/2, what are the issuer's cash proceeds from issuance of these bonds? Coproces s 256,760 Required 25 QS 14-17B Effective Interest: Bond discount computations LO P5 Garcia Company issues 10.00%, 15 year tronds with a par value of $130,000 and semiannual merest payments. On the issue date, the annual market rate for these bonds is 14.00%, which mpilles a selling price of 77 12. The effective interest method is used to allocate Triterest expense 1. Using the impled selling price of 77 12, what are the issuer's cash proceeds from Issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of these bonds? 3. What amount of bond Interest expense is recorded on the first interest payment date? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required a What total amount of bond interest expense will be recognized over the life of these bonds? 30 Payments Total Bond Interest Expense Over Life of Bonds: Amount repaid Is 10.500 IS 495.000 Par value at maturity 330,000 Total repayments 825,000 Les amount borrowed from part 1) 248, 100 % Total and interest expense s 570,000 QS 14-17B Effective Interest: Bond discount computations LO P5 Garcia Company issues 10.00%, 15 year bonds with a par value of $330,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 14.00%, which Implles a selling price of 77 12. The effective interest method is used to allocate interest expense 1. Using the implied selling price of 77 1/2, what are the issuer's cash proceeds from Issuance of these bonds? 2. What total amount of bond Interest expense will be recognized over the life of these bonds? 3. What amount of bond Interest expense is recorded on the first interest payment date? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What amount of bond interest expense is recorded on the first interest payment date? Bond interest expense s 9,7173
