1. Compute market price of bonds. Provide detailed computation. Use functions in Excel 2. What is an amount of discount /premium? Indicate, what it is (discount or premium). Computation. 3. Prepare amortization schedule for first 5 years. Use formulas in Excel. 4. Prepare journal entry to record bond issue. 5. Prepare journal entry on July 1, 2020. 5. Prepare journal entry on December 31, 2020. 7. Prepare journal entry on January 1, 2021

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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tELLiy, you must enter your ID number on the first sheet!
On January 1, 2020 Omsk Corporation issued
Bonds pay interest each July 1 and January 1.
150,000 of 5 % bonds, due in
17 years
12 % market rate of interest.
Assume
Requirements (Round to 0 decimals, Rounding errors do not matter):
1. Compute market price of bonds. Provide detailed computation. Use functions in Excel
2. What is an amount of discount /premium? Indicate, what it is (discount or premium). Computation.
3. Prepare amortization schedule for first 5 years. Use formulas in Excel.
4. Prepare journal entry to record bond issue.
5. Prepare journal entry on July 1, 2020.
6. Prepare journal entry on December 31, 2020.
7. Prepare journal entry on January 1, 2021
Transcribed Image Text:tELLiy, you must enter your ID number on the first sheet! On January 1, 2020 Omsk Corporation issued Bonds pay interest each July 1 and January 1. 150,000 of 5 % bonds, due in 17 years 12 % market rate of interest. Assume Requirements (Round to 0 decimals, Rounding errors do not matter): 1. Compute market price of bonds. Provide detailed computation. Use functions in Excel 2. What is an amount of discount /premium? Indicate, what it is (discount or premium). Computation. 3. Prepare amortization schedule for first 5 years. Use formulas in Excel. 4. Prepare journal entry to record bond issue. 5. Prepare journal entry on July 1, 2020. 6. Prepare journal entry on December 31, 2020. 7. Prepare journal entry on January 1, 2021
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