The notes to the Friendship Ltd. financial statements reported the following data on December 31, Year 1 (end of the fiscal year):

Requirement 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

Friendship Ltd.'s long-term liabilities:

a. Using the PV function in Excel Superscript what is the issue price of the bonds?

b. What is the maturity value of the 3% bonds?

c. What is Friendship Ltd.'s annual cash interest payment on the 3% bonds?

d. What is the carrying amount of the 3% bonds at December 31, year 1?

Requirement 2. Prepare an amortization table through December 31, Year 4 for the 3%

bonds. (Round all amounts to the nearest dollar.) How much is Friendship Ltd.'s interest expense on the 3% bonds for the year ended December 31, Year 4?

Begin by preparing the amortization table through December 31, Year 4 for the 3% bonds. (Round your answer to the nearest whole dollar.)

.

Data Table s interest expense Note 6. Indebtedness Bonds payable, 3% due on December 31 Less: Discount. Notes payable, 7%, payable in $50,000 annual installments starting in Year 5. 300,000 Print Done