90.2K

Verified Solution

Link Copied!

Gilmartin Corporation issued $450,000 of 14%, 10-year bonds payable on January 1, 2019. The market interest rate at the date of issuance was 12%, and the bonds pay interest semiannually on June 30 and December 31.martin Corporation's year end is June 30. Gamartin prepared an effective interest amortization table for the bonds through the first three interest payments as follows: P Click the icon to view the amortization schedule.) Relerrements 1. How much cash did Gilmartin Corporation borrow on January 1, 2019? How much cash will Gilmartin Corporation pay back at maturity? Gilmartin borrowed $ on January 1, 2010. The company will pay back at maturity 2. How much cash interest wil Gimartin Corporation pay each six months Gilmartin will pay $ cash interest each months 3. How much interest expense wil decrease each period? Why? martin Corporation report on June 30, 2019, and on December 31, 2019? Does the amount of interest expense increase or Grain will reports of interest expense for the six months anding June 30, 2018 Enter any number in the edit fields and then continue to the next question on issued $450,000 of 14%, 10-year bonds payable on January 1, 2019. The market interest rate at the date of issuance was 12%, and mnually (on June 30 and December 31). Gilmartin Corporation's year-end is June 30. Gilmartin prepared an effective-interest amortizatio the to A Reference meni eh did Semiannual Interest Date Interest Payment Interest Expense Premium Amortization Premium Account Balance Bond Carrying Amount wed $ Jan 1, 2019 ush int ay $ Jun 30, 2019 Dec 31, 2019 Jun 30, 2020 31,500 31,500 31.500 30,097 30,013 29,924 1,403 1,487 1,576 51,615 50,212 48,725 47,149 501,615 500,212 498,725 497,149 nterest period se increase reports Print Print Done] mber in the edit fields and then continue to the next question, ration issued $450,000 of 14%, 10-year bonds payable on January 1, 2019. The mainel elust all miannually (on June 30 and December 31). Gilmartin Corporation's year-end is June 30. Gilmartin prepared an effective-interest amortizat gh the first three interest payments as follows: con to view the i Requirements rements. cash did Gilmarti rowed $ Use the amortization table for Gilmartin Corporation's bonds to answer the following questions: 1. How much cash did Gilmartin Corporation borrow on January 1, 2019? How much cash will Gilmartin Corporation pay back at maturity? 2. How much cash interest will Gilmartin Corporation pay each six months? 3. How much interest expense will Gilmartin Corporation report on June 30, 2019, and on December 31, 2019? Does the amount of interest expense increase or decrease each period? Why? cash interest will pay $ n interest expense ach period? Why? est expense increa: Print Done Till reports umber in the edit field and then conti

Answer & Explanation Solved by verified expert

See Answer