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theres 11 parts can u answer all The notes to the Wolfe Lid financial statements reported the following data on December 31 , Year 1
theres 11 parts can u answer all
The notes to the Wolfe Lid 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 reaurements Requirement 1. Assume the market interest rate is 5% on January 1 of year 1 , the date the bonds are issued. (Round your answers to the nearest whole doifar.) a. Using the PV function in Excel, what is the issue price of the bonds? The issue price of the bonds is Note 6. Indebtedness Bonds payable, 2% due on December 31 , Year 8$4,000,000 Less: Discount Notes payable, 4%; payable in $55,000 annual installments starting in Year 5 1. Assume the market interest rate is 5% 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 paymint 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 Step by Step Solution
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