1. Face amount2. Initial selling price3. Term to maturity4. Interest is determined by what approach?5. Stated annual interest rate6. Effective annual interest rate7. Total cash interest paid8. Effective interest expenseyears%% 30 and December 31. Portions of the bond amortization schedule appear below:PaymentCashPayment InterestEffectiveIncrease inBalanceOutstandingBalance6,627,27312345622320,000331,36411,3646,638,637320,000331,93211,9326,650,569320,000 332,52812,5286,663,097320,000 333,15513,1556,676,252320,000 333,81313,8136,690,065320,000334,50314,5036,704,568~~38320,000 389,10769,1077,851,2473940320,000392,56272,562320,000 396,19176,1917,923,8098,000,000Required:1. What is the face amount of the bonds?2. What is the initial selling price of the bonds?3. What is the term to maturity in years?4. Interest is determined by what approach?5. What is the stated annual interest rate?6. What is the effective annual interest rate?7. What is the total cash interest paid over the term to maturity?8. What is the total effective interest expense recorded over the term to maturity?

1.) Based on the following information given the Face amount of the bonds will be $8,000,0002.)Based…

30 and December 31. Portions of the bond amortization schedule appear below: Payment Cash Payment Effective Interest Increase in Balance Outstanding Balance 6,627,273 2234562220002 1 320,000 331,364 11,364 6,638,637 320,000 331,932 11,932 6,650,569 320,000 332,528 12,528 6,663,097 320,000 333,155 13,155 6,676,252 320,000 320,000 333,813 13,813 6,690,065 334,503 14,503 6,704,568 222 ~ ~ 222 ~ ~ ~ 38 320,000 389,107 69,107 7,851,247 39 320,000 392,562 72,562 7,923,809 320,000 396, 191 76,191 8,000,000 Required: 1. What is the face amount of the bonds? 2. What is the initial selling price of the bonds? 3. What is the term to maturity in years? 4. Interest is determined by what approach? 5. What is the stated annual interest rate? 6. What is the effective annual interest rate? 7. What is the total cash interest paid over the term to maturity?

30 and December 31. Portions of the bond amortization schedule appear below: Payment Cash Payment Effective Interest Increase in Balance Outstanding Balance 6,627,273 2234562220002 1 320,000 331,364 11,364 6,638,637 320,000 331,932 11,932 6,650,569 320,000 332,528 12,528 6,663,097 320,000 333,155 13,155 6,676,252 320,000 320,000 333,813 13,813 6,690,065 334,503 14,503 6,704,568 222 ~ ~ 222 ~ ~ ~ 38 320,000 389,107 69,107 7,851,247 39 320,000 392,562 72,562 7,923,809 320,000 396, 191 76,191 8,000,000 Required: 1. What is the face amount of the bonds? 2. What is the initial selling price of the bonds? 3. What is the term to maturity in years? 4. Interest is determined by what approach? 5. What is the stated annual interest rate? 6. What is the effective annual interest rate? 7. What is the total cash interest paid over the term to maturity?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter8: Liabilities And Stockholders' Equity

Section: Chapter Questions

Problem 8.3.3MBA

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