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Unable to figure out the workings to get the correct answers. WaterwayLtd. issued a $1,062,000, 10-year bond dated January 1, 2020. The bond was sold
Unable to figure out the workings to get the correct answers.
WaterwayLtd. issued a $1,062,000, 10-year bond dated January 1, 2020. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Waterway followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answers to decimal places, e.g. 5,275.) Proceeds from sale of bond $ 940,189.44 Discount on bond $ $ 121,810.56 Cash 121,810.56 Bonds Payable 121,810.56 Interest Expense Bond Interest Payable Cash 63720 Interest Expense Bond Interest Payable Interest Payable 63720 Bonds Payable 1,062,000 Cash 1,062,000Step by Step Solution
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