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

Thankful amortizes bond discounts using the effective$-$interest method and pays all interest amounts at December $31.$Data table

Note $6.$ Indebtedness

Bonds payable, $2\%$ due on December $31,$ Year $8$

$$4,500,000$

Less: Discount

$?$

Notes payable, $7\%,$ payable in $$60,000$ annual

installments starting in Year $5$

$ $360,000$The notes to the Thankful Ltd$.$ financial statements reported the following data on December $31,$ Year $1($end of the fiscal year$)$:

$($Click the icon to view the financial statement data.$)$

Thankful amortizes bond discounts using the effective$-$interest method and pays all interest amounts at December $31.$

Read the requirements.

Requirement $1.$ Assume the market interest rate is $6\%$ on January $1$ of year $1,$ the date the bonds are issued. $($Round your answers to the nearest whole dollar.$)$

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

The issue price of the bonds is

Requirements

Data table

Note $6.$ Indebtedness

Bonds payable, $2\%$ due on December $31,$ Year $8$

Less: Discount

Notes payable, $7\%,$ payable in $$60,000$ annual

Assume the market interest rate is $6\%$ on January $1$ of year $1,$ the date the bonds are

issued.

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

b$.$ What is the maturity value of the bonds?

c$.$ What is Thankful's annual cash interest payment on the bonds?

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

Prepare an amortization table through December $31,$ Year $4$ for the bonds. $($Round all

amounts to the nearest dollar.$)$ How much is Thankful's interest expense on the bonds for

the year ended December $31,$ Year $4?$

installments starting in Year $5$

Read the requirements.

Requirement $1.$ Assume the market interest rate is $6\%$ on January $1$ of year $1,$ the date the bonds are issued. $($Round your answers to the nearest whole dollar.$)$

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

The issue price of the bonds is

Assume the market interest rate is $6\%$ on January $1$ of year $1,$ the date the bonds are

issued.

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

b$.$ What is the maturity value of the bonds?

c$.$ What is Thankful's annual cash interest payment on the bonds?

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

Prepare an amortization table through December $31,$ Year $4$ for the bonds. $($Round all

amounts to the nearest dollar.$)$ How much is Thankful's interest expense on the bonds for

the year ended December $31,$ Year $4?$

Show how Thankful would report these bonds and notes at December $31,$ Year $4.$