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  3. nlc corp issues 10 $1,000 bonds with a coupon rate

NLC Corp issues 10 $1,000 bonds with a coupon rate of 5% on Jan 1,...

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Accounting

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NLC Corp issues 10 $1,000 bonds with a coupon rate of 5% on Jan 1, 2014. These bonds mature in 5 years and interest is paid semi annually. The market rate at the time of issuance is 4% 1-Calculate the price of this bond (show ALL calculations) 2- Complete the effective interest amortization table for this bond below: Date Cash interest payment Carrying value Bond interest expense Premium amortization Unamortized premium 1/1/2014 6/30/2014 12/31/2014 6/30/2015 12/31/2015 6/30/2016 12/31/2016 6/30/2017 12/31/2017 6/30/2018 12/31/2018 Total 10,000 3- Record all the journal entries using the journal below II Date Accounts Debit Credit 1/1/2014 (Issuance date) 6/30/2014 12/31/2014 6/30/2015 12/31/2015 6/30/2016 12/31/2016 6/30/2017 12/31/2017 6/30/2018 12/31/2018 (Maturity date)

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