P9-76A (similar to) Question Help The notes to the Friendship Ltd. financial statements reported the...
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P9-76A (similar to) Question Help The notes to the Friendship Ltd. financial statements reported the following data on December 31, Year 1 (end of the fiscal year) (Click the icon to view the financial statement data.) Friendship Ltd. amortizes bond discount by the effective-interest method and pays all interest amounts at December 31 Read the requirements. Requirement 1, Assume the market interest rate on January 1 of year 1, the date of issuance of the bonds, is 6%. Answer the following questions about Friendship Ltd.'s long-term lablities: (Round your answers to the nearest whole dollar.) a. Using the PV function in Excel, what is the issue price of the bonds? The issue price of the bonds is $ Data Table Note 6. Indebtedness Bonds payable, 1% due on December 31, Year 8 . . . . . Less: Discount. Notes payable, 6%, payable in $60,000 annual $6,000,000 Enter any number in the edit fields and then click Check Answer. installments starting in Year 5 360,000 remaining
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