On January 1, 2016, Emily Tax Services issued $200,000, 9%,four-year bonds. Interest is paid...

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Accounting

On January 1, 2016, Emily Tax Services issued $200,000, 9%,four-year bonds. Interest is paid semiannually on June 30 andDecember 31. The bonds were issued when the market rate was 8%.Required:
5.Find the selling price of the Bonds
6.Prepare an amortization schedule that determines interest atthe effective interest rate.
7.Prepare an amortization schedule by the straight-linemethod.
8.Prepare the journal entries to record interest expense on June30, 2018, by each of the two approaches.
Please provide details formula.

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3.8 Ratings (472 Votes)

5 Amount Excel formula Present value of Maturity 146138 PV4802000000 Add Present value of Interest Payment 60595 PV482000004500 Selling price of Bonds 206733 6 Date Cash Interest Interest Expense Amortization of Bond Carrying 45 of 200000 4 of Carrying value See Answer

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In: AccountingOn January 1, 2016, Emily Tax Services issued $200,000, 9%,four-year bonds. Interest is paid semiannually...On January 1, 2016, Emily Tax Services issued $200,000, 9%,four-year bonds. Interest is paid semiannually on June 30 andDecember 31. The bonds were issued when the market rate was 8%.Required:5.Find the selling price of the Bonds6.Prepare an amortization schedule that determines interest atthe effective interest rate.7.Prepare an amortization schedule by the straight-linemethod.8.Prepare the journal entries to record interest expense on June30, 2018, by each of the two approaches.Please provide details formula.