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Question: York Fashions issued a 5 year $100,000 Bond with coupon rate of 10% on January 1, 2010. Interest is paid Quarterly on March

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Question: York Fashions issued a 5 year $100,000 Bond with coupon rate of 10% on January 1, 2010. Interest is paid Quarterly on March 31, June 30, Sept. 30 and December 31. The market interest rate is 8%. a. Calculate the issue price of the bond b. Calculate the price of the bond as a percentage C. Make a journal entry to record the sale of the bond. P Prepare amortization schedule for the entire five years using the effective interest rate method e. f. 9. h. Make journal entries to record interest payments for years 2010, 2011 and 2012 using the effective interest rate method Prepare a partial balance sheet as of Dec. 31, 2012 Assume that on 9/30/2011, XYZ Co. retired half of the outstanding bonds at 85 of face; Prepare the necessary entries to retire the bonds Assume that no bonds were redeemed during the life of the bond and all interest payments have been made. Prepare journal entry to redeem the bonds upon maturity.

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