On January 1, 2015, Mac Inc. issued 3,000,000 bonds with a coupon rate of 8% maturing in 4 years. The interest is paid annually, and the market interest rate at the date of issue was 11%. What is the issue price of the bond? Prepare the 4 year amortization schedule for the bond. Perio Amortization Interest to be Interest Expense=carry ing amount x 11% Carrying Balance d of Discount paid=3M x 8% = Int exp. Int paid 2,720,779. 89 240,000.00 240,000.00 240,000.00 1 2 3 4 240,000.00

On January 1, 2015, Mac Inc. issued 3,000,000 bonds with a coupon rate of 8% maturing in 4 years. The interest is paid annually, and the market interest rate at the date of issue was 11%. What is the issue price of the bond? Prepare the 4 year amortization schedule for the bond. Perio Amortization Interest to be Interest Expense=carry ing amount x 11% Carrying Balance d of Discount paid=3M x 8% = Int exp. Int paid 2,720,779. 89 240,000.00 240,000.00 240,000.00 1 2 3 4 240,000.00

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2PA: On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The...

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