Question
Question is how to Create an amortization table using tools reviewed from your Excel textbook from CIS 155. Be sure to total the cash interest
Question is how to Create an amortization table using tools reviewed from your Excel textbook from CIS 155. Be sure to total the cash interest to be paid and the total interest expense over the life of the bond. Please including the excel formula for PVAF and PVIF. How to calculate "beginning carrying value, cash interest, interest expense, amortize now, unamortized discount, and ending carrying value "? Also, how to calculate the dollar amount at "PRINCIPAL and INTEREST" below are the tables.
How to prepare the January 1, 2018 journal entry for the initial issuance.
How to prepare the journal entries to record the first two interest payments.
| GOLF WORLD | FIFTEEN-YEAR BOND | DATE | Beginning Carrying Value | Cash Interest | Interest Expense | Amortize Now | Unamortized Discount | Ending Carrying Value | ||||
| Bond face value | 240,000 | 2018 | Jan 1 | |||||||||
| Years | 15 | June 30 | ||||||||||
| Contract rate | 6% | Dec 31 | ||||||||||
| Market rate | 8% | 2019 | June 30 | |||||||||
| dollar amount | table values | PV | Dec 31 | |||||||||
| PRINCIPAL | 2020 | June 30 | ||||||||||
| INTEREST | Dec 31 | |||||||||||
| n = | 30 | - | 2021 | June 30 | ||||||||
| i = | 4% | Dec 31 | ||||||||||
| 2022 | June 30 | |||||||||||
| Dec 31 | ||||||||||||
| ADD EXCEL TOOLS REQUIREMENTS HERE | 2023 | June 30 | ||||||||||
| Dec 31 | ||||||||||||
| PV | 2024 | June 30 | ||||||||||
| Dec 31 | ||||||||||||
| 2025 | June 30 | |||||||||||
| Dec 31 | ||||||||||||
| 2026 | June 30 | |||||||||||
| Dec 31 | ||||||||||||
| 2027 | June 30 | |||||||||||
| Dec 31 | ||||||||||||
| 2028 | June 30 | |||||||||||
| Dec 31 | ||||||||||||
| 2029 | June 30 | |||||||||||
| Dec 31 | ||||||||||||
| 2030 | June 30 | |||||||||||
| Dec 31 | ||||||||||||
| 2031 | June 30 | |||||||||||
| Dec 31 | ||||||||||||
| 2032 | June 30 | |||||||||||
| Dec 31 | ||||||||||||
Golf World, Inc., issued $240,000 of 6%, 15-year bonds dated January 1, 2018 that will pay interest semiannually on June 30 and December 31. These bonds were issued at
$198,494, and the market rate of interest was 8% at the issue date.
Notice that you are given the face value and the selling price, so you can already determine if it was sold at a Discount or a Premium. This problem is designed to provide practice building amortization tables, but you still must verify that the selling price provided is correct using both Excel time value of money prebuilt formulas as well as verifying the amount by reading the tables manually. Your instructor will be looking for this as a way you can "show your work."
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Financial accounting
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
8th Edition
9780135114933, 136108865, 978-0136108863
