FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Afarian Corporation issued $500,000 of 6%, 10-year bonds payable on January 1, 2022. The market interest rate at the date of issuance was 4%, and the bonds pay
interest semiannually (on June 30 and December 31). Afarian Corporation's year-end is June 30.
Read the requirements.
C
1. Using the PV function in Excel, calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.)
The issue price of the bonds is
Requirements
1. Using the PV function in Excel, calculate the issue price of the bonds.
2. Prepare an effective-interest amortization table for the bonds through the first
three interest payments. Round amounts to the nearest dollar.
3. Record Afarian Corporation's issuance of the bonds on January 1, 2022, and
payment of the first semiannual interest amount and amortization of the bond
premium on June 30, 2022. Explanations are not required.
- X
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Transcribed Image Text:Afarian Corporation issued $500,000 of 6%, 10-year bonds payable on January 1, 2022. The market interest rate at the date of issuance was 4%, and the bonds pay interest semiannually (on June 30 and December 31). Afarian Corporation's year-end is June 30. Read the requirements. C 1. Using the PV function in Excel, calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.) The issue price of the bonds is Requirements 1. Using the PV function in Excel, calculate the issue price of the bonds. 2. Prepare an effective-interest amortization table for the bonds through the first three interest payments. Round amounts to the nearest dollar. 3. Record Afarian Corporation's issuance of the bonds on January 1, 2022, and payment of the first semiannual interest amount and amortization of the bond premium on June 30, 2022. Explanations are not required. - X
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