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THANK YOU!!!!! 99 Check my work 2 Required information [The following information applies to the questions displayed below. Part 1 of 9 On January 1
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99 Check my work 2 Required information [The following information applies to the questions displayed below. Part 1 of 9 On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective interest amortization method. The partially completed amortization schedule below pertains to the bonds: 6 Cash Interest Amortization points Skipped Date January 1, Year 1 End of Year 1 End of Year 2 End of Year 3 End of Year 4 $ 3,600 ? ? 7 ? ? $ 3,417 ? 7 3,376 $ 183 ? 210 ? Balance $ 48,813 48,630 48,434 7 ? 48,000 eBook Required: 1. Complete the amortization schedule. (Enter all your values in positive. Round your final answers to nearest whole dollar amount.) Print References Date January 1, Year 1 End of Year 1 End of Year 2 End of Year 3 $ Cash Interest Amortization Balance $ 48,813 3,600 $ 3,417 $ 183 $ 48,630 3,600 $ 48,434 3,600 $ 210 Wwwwwwww 3,600 $ 3,376 $ 48,000 $ $ End of Year 4 $ Check my work 3 3 ! Required information Part 2 of 9 [The following information applies to the questions displayed below.) On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: 6 points Cash Interest Amortization Skipped Date January 1, Year 1 End of Year 1 End of Year 2 End of Year 3 End of Year 4 $ 3,600 ? ? $ 3,417 ? ? 3,376 $ 183 ? 210 ? Balance $ 48,813 48,630 48,434 ? 48,000 ? eBook Print 2. When the bonds mature at the end of Year 4, what amount of principal will Olive pay investors? Principal amount References 99 Check my work 4 ! Required information Part 3 of 9 [The following information applies to the questions displayed below.] On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: 6 points Cash Interest Amortization Skipped Date January 1, Year 1 End of Year 1 End of Year 2 End of Year 3 End of Year 4 $ 3,600 ? ? ? $ 3,417 ? ? 3,376 $ 183 ? 210 ? Balance $ 48,813 48,630 48, 434 ? 48,000 eBook Print 3. How much cash was received on the day the bonds were issued (sold)? Cash received References Check my work UT ! Required information (The following information applies to the questions displayed below.] Part 4 of 9 On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: 6 points Cash Interest Amortization Skipped $ 3, 417 Date January 1, Year 1 End of Year 1 End of Year 2 End of Year 3 End of Year 4 $ 3,600 ? ? ? ? Balance $ 48,813 48,630 48,434 ? 48,000 $ 183 ? 210 ? ? 3,376 eBook Print 4. Were the bonds issued at a premium or a discount? If so, what was the amount of the premium or discount? References 5. How much cash will be disbursed for interest each period and in total over the life of the bonds? Cash disbursed per period Cash disbursed in total 6. What is the coupon rate? (Enter your answer as a percentage rounded to 1 decimal place (i.e. 0.123 should be entered as 12.3).) Coupon Rate % 7. What was the annual market rate of interest on the date the bonds were issued? (Enter your answer as a percentage rounded to the nearest whole percent (i.e. 0.123 should be entered as 12).) Market rate of interest % 8. What amount of interest expense will be reported on the income statement for Year 2 and Year 3? (Round your final answers to nearest whole dollar amount.) Interest Expense Year 2 Year 3 9. What amount will be reported on the balance sheet at the end of Year 2 and Year 3? Bonds Payable Year 2 Year 3Step by Step Solution
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