Required Information 3.33 points 2 , ilen \"la ex\" nikami ian TX arnd 4: ?:r? m

Question

Required Information 3.33 points 2 , ilen "la ex" nikami ian TX arnd 4: ?:r? mut:?31tE4?2mL 0 0 E 0 .?? of $1 Use appropriate factor(s) from the tables provided. Do not round interest rate factors. ice$ 411,987 Required Information Interest Increase in The following information applies to the questions displayed below Expense Carrying ValueCarrying Valus 0101/18 06/30/18 12/31/18 Coney Island Entertainment issues $1,000,000 of 6% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization sched ule when: References eBook & Resources Worksheet Learning Objective: 09-05 Determine the price of a bond issue. Difficulty: 2 Medium Learning Objective: 09-06 Account for the issuance of bonds.

Explanation / Answer

Principal 1,000,000 interest 30000 Calculation of bond issue price Where i= 3.50% t= 30 years principal * PV of $1 at 3.5% for 30 yrs = 1,000,000 * 0.35628        =              356,280 interest * PV of ordinary annuity at 3.5%= 30000 * 18.39205 =              551,762 bond issue price              908,042 Cash interest increase Carrying Date paid expense in CV value 1/1/2018 908,042 6/30/2018 30,000 31781 1781 909823 12/31/2018 30,000 31844 1844 911667

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.