Your "Input" area should start with information containing the bond face issue amount, stated interest rate, market rate, term of the bond issue, interest payment frequency, total cash interest payment amount for year, cash payment interest amount per period, stated interest rate per period, market rate per period, and original carrying amount of the bond (you do not have to show in the Excel spreadsheet how you calculated the discount or premium but you may if you wish) Your "Output" area should provide all information as listed in Chapter 14, Illustration 14-6 or Illustration 14- 8. Homework: Complete the bond amortization schedule needed to show the complete amortization period (all the way through September 1, 2023) on Part 1 of Problem 14-5. li (1 + i)" TABLE B.3 Present Value of an Annuity of 1 Rate Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 15% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 0.9901 1.9704 2.9410 3.9020 4.8534 5.7955 6.7282 7.6517 8.5660 9.4713 10.3676 11.2551 12.1337 13.0037 13.8651 14.7179 15,5623 16.3983 17.2260 18.0456 22.0232 25.8077 29.4086 32.8347 0.9804 1.9416 2.8839 3.8077 4.7135 5.6014 6.4720 7.3255 8.1622 8.9826 9.7868 10.5753 11.3484 12.1062 12.8493 13.5777 14.2919 14.9920 15.6785 16.3514 19.5235 22.3965 24.9986 27.3555 0.9709 1.9135 2.8286 3.7171 4.5797 5.4172 6.2303 7.0197 7.7861 8.5302 9.2526 9.9540 10.6350 11.2961 11.9379 12.5611 13.1661 13.7535 14.3238 14.8775 17.4131 19.6004 21.4872 23.1148 0.9615 1.8861 2.7751 3.6299 4.4518 5.2421 6.0021 6.7327 7.4353 8.1109 8.7605 9.3851 9.9856 10.5631 11.1184 11.6523 12.1657 12.6593 13.1339 13.5903 15.6221 17.2920 18.6646 19.7928 0.9524 1.8594 2.7232 3.5460 4.3295 5.0757 5.7864 6.4632 7.1078 7.7217 8.3064 8.8633 9.3936 9.8986 10.3797 10.8378 11.2741 11.6896 12.0853 12.4622 14.0939 15.3725 16.3742 17.1591 0.9434 1.8334 2.6730 3.4651 4.2124 4.9173 5.5824 6.2098 6.8017 7.3601 7.8869 8.3838 8.8527 9.2950 9.7122 10.1059 10.4773 10.8276 11.1581 11.4699 12.7834 13.7648 14.4982 15.0463 0.9346 1.8080 2.6243 3.3872 4.1002 4.7665 5.3893 5.9713 6.5152 7.0236 7.4987 7.9427 8.3577 8.7455 9.1079 9.4466 9.7632 10.0591 10.3356 10.5940 11.6536 12.4090 12.9477 13.3317 0.9259 1.7833 2.5771 3.3121 3.9927 4.6229 5.2064 5.7466 6.2469 6.7101 7.1390 7.5361 7.9038 8.2442 8.5595 8.8514 9.1216 9.3719 9.6036 9.8181 10.6748 11.2578 11.6546 11.9246 0.9174 1.7591 2.5313 3.2397 3.8897 4.4859 5.0330 5.5348 5.9952 6.4177 6.8052 7.1607 7.4869 7.7862 8.0607 8.3126 8.5436 8.7556 8.9501 9.1285 9.8226 10.2737 10.5668 10.7574 0.9091 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 5.7590 6.1446 6.4951 6.8137 7.1034 7.3667 7.6061 7.8237 8.0216 8.2014 8.3649 8.5136 9.0770 9.4269 9.6442 9.7791 0.8929 1.6901 2.4018 3.0373 3.6048 4.1114 4.5638 4.9676 5.3282 5.6502 5.9377 6.1944 6.4235 6.6282 6.8109 6.9740 7.1196 7.2497 7.3658 7.4694 7.8431 8.0552 8.1755 8.2438 0.8696 1.6257 2.2832 2.8550 3.3522 3.7845 4.1604 4.4873 4.7716 5.0188 5.2337 5.4206 5.5831 5.7245 5.8474 5.9542 6.0472 6.1280 6.1982 6.2593 6.4641 6.5660 6.6166 6.6418 * Used to calculate the present value of a series of equal payments made at the end of each period. For example: What is the present value of $2,000 per year for 10 years assuming an annual interest rate of 9. For in= 10.1=9), the PV factor is 6,4177.52.000 per year for 10 years is the equivalent of $12.835 today ($2.000 x 64177). Morgan National Bank (Creditor) Cash Received (8%) Interest Revenue (12%) Increase of Carrying Amount Date 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 Total $ 560,000 560,000 560,000 560,000 $2,240,000 $ 737,947b 759,300 783,216 809,9810 $3,090,444 Carrying Amount of Note $6,149,556 6,327,503 6,526,80 6,750 19 7,000,000 $177,9470 199,300 223,216 249,981d $850,444 Resorts Development Co. (Debtor) Morgan National Bank (Creditor) December 31, 2020 (date of first interest payment following restructure) Notes 560,000 Cash 560,000 Payable Cash 560,000 Allowance for Doubtful 177,947 Accounts Interest Revenue 737,947 December 31, 2021, 2022, and 2023 (dates of 2nd, 3rd, and last interest payments) (Debit and credit same accounts as 12/31/20 using applicable amounts from appropriate amortization schedules.) December 31, 2023 (date of principal payment) 7,000,000 Cash 7,000,000 Notes Payable Cash 7,000,000 3,500,000 Allowance for Doubtful Accounts Notes Receivable 10,500,000 ILLUSTRATION 14A 8 Debtor and Creditor Entries to Record Periodic Interest and Final Principal Payments Illustration 14A.6 shows the entries to record the gain and loss on the debtor's and creditor's books at the date of restructure, December 31, 2019. December 31, 2019 (date of restructure) Resorts Development Co. (Debtor) Morgan National Bank (Cr cor) Notes 1,260,000 Bad Debt 4,350,444 Payable Expense Gain on 1,260,000 Allowance 4,350,444 Restructuring for Doubtful of Debt Accounts ILLUSTRATION 14A.6 Debtor and Creditor Entries to Record Gain and Loss on Note Instructions For the two cases prepare all of the relevant journal entries from the time of sale until the date indicated. Use the effective-interest method for discount and premium amortization (construct amortization tables where applicable). Amortize premium or discount on interest dates and at year- end. (Assume that no reversing entries were made.) P14.5 (LO 1, 2) Excel (Comprehensive Bond Problem) In each of the following independent cases, the company closes its books on December 31. 1. Sanford Co. sells $500,000 of 10% bonds on March 1, 2020. The brus pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021