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The board of directors of Circuits Plus authorizes the issue of $9,000,000 of 8%,25-year bonds payable. The semiannual interest dates are May 31 and November

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The board of directors of Circuits Plus authorizes the issue of $9,000,000 of 8%,25-year bonds payable. The semiannual interest dates are May 31 and November 30 . The bonds are issued on May 31, 2016, at par. Requirements 1. Assume the market interest rate on January 1 of year 1 , the date of issuance of the bonds, is 6%. Answer the following questions about Mann Ltd's long-term liabilities a. Using the PV function in Excel, what is the issue price of the bonds? b. What is the maturity value of the 2% bonds? c. What is Mann Ltd.'s annual cash interest payment on the 2% bonds? d. What is the carrying amount of the 2% bonds at December 31 , year 1 ? 2. Using Exhibit 9.4 as a model, prepare an amortization table through the maturity date for the 2% bonds. (Round all amounts to the nearest dollar.) How much is Mann Ltd's interest expense on the 2% bonds for the year ended December 31, Year 4 ? 3. Show how Mann Ltd would report the 2% bonds payable and the 6% notes payable at Dcember 31 , Year 4. The board of directors of Circuits Plus authorizes the issue of $9,000,000 of 8%,25-year bonds payable. The semiannual interest dates are May 31 and November 30 . The bonds are issued on May 31, 2016, at par. Requirements 1. Assume the market interest rate on January 1 of year 1 , the date of issuance of the bonds, is 6%. Answer the following questions about Mann Ltd's long-term liabilities a. Using the PV function in Excel, what is the issue price of the bonds? b. What is the maturity value of the 2% bonds? c. What is Mann Ltd.'s annual cash interest payment on the 2% bonds? d. What is the carrying amount of the 2% bonds at December 31 , year 1 ? 2. Using Exhibit 9.4 as a model, prepare an amortization table through the maturity date for the 2% bonds. (Round all amounts to the nearest dollar.) How much is Mann Ltd's interest expense on the 2% bonds for the year ended December 31, Year 4 ? 3. Show how Mann Ltd would report the 2% bonds payable and the 6% notes payable at Dcember 31 , Year 4

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