The notes to the Wolfe 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) Wolfe 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 b. What is the maturity value of the bonds? The maturity value of the bonds is c. What is Wolfe's annual cash interest payment on the bonds? The annual cash interest payment is d. What is the carrying amount of the bonds at December 31, year 1? The carrying amount of the bonds at December 31, Year 1 is Requirement 2. Prepare an amortization table through December 31, Year 4 for the bonds. (Round all amounts to the nearest dollar.) How much is Wolfe's interest expense on the bonds for the year ended D Begin by preparing the amortization table through December 31, Year 4 for the bonds. (Round your answer to the nearest whole dollar.) Wolfe Ltd. Data table est rate is 6% on the issue price of s? Note 6. Indebtedness Bonds payable, 1% due on December 31, Year 8 Less: Discount Notes payable, 4%, payable in $55,000 annual payment on the bon installments starting in Year 5 onds at December 3 Print Done $ 5,300,000 ? ? $ 330,000 - X #ecember 31, Year 1 i on table through December 31, rear for the bonds. (Round air amounts to the nearest cowar.) How miccit is wome's morest expense on the bonds for the year ended Dec mble through December 31, Year 4 for the bonds. (Round your answer to the nearest whole dollar.) Requirements he market interest rate is 6% on Excel, what is the issue price of ds is we of the bonds? bonds is cash interest payment on the bol payment is mount of the bonds at December 3 he bonds at December 31, Year 1 an amortization table through De mortization table through December 1. 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 Wolfe's annual cash interest payment on the bonds? d. What is the carrying amount of the bonds at December 31, year 1? 2. Prepare an amortization table through December 31, Year 4 for the bonds. (Round all amounts to the nearest dollar.) How much is Wolfe's interest expense on the bonds for the year ended December 31, Year 4? 3. Show how Wolfe would report these bonds and notes at December 31, Year 4. Wolfe Ltd. Amortization Table pound your Print Done WHORE DOIS the bonds for the year ended December C 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 b. What is the maturity value of the bonds? The maturity value of the bonds is c. What is Wolfe's annual cash interest payment on the bonds? The annual cash interest payment is d. What is the carrying amount of the bonds at December 31, year 1? The carrying amount of the bonds at December 31, Year 1 is Requirement 2. Prepare an amortization table through December 31, Year 4 for the bonds (Round all amounts to the nearest dollar) How much is Wolle's interest expense on the bonds for the year ended December 31, Yar Begin by preparing the amortization table through December 31, Year 4 for the bonds (Round your answer to the nearest whole dr Wolfe Ltd Amortization Table Annual Interest Date Interest Payment Expense Discount Amon Discount Account Balance Bond Carrying Amount Jan 1. Yr 1 Dec 31, YY 1 Dec 31, Yr2 Dec 31. 3 Dec 31, Yy 4 How much is Wolfe's interest expense on the bonds for the year ended December 31, Year 47 Dec 31, Yr 2 Dec 31, Yr 3 Dec 31, Yr 4 How much is Wolfe's interest expense on the bonds for the year ended December 31, Year 4? Requirement 3. Show how Wolfe would report these bonds and notes at December 31, Year 4. Liabilities Calculator