Issue Price of Bonds, Amortization Schedule of Bonds
Not what you're looking for?
On January 1, 2008, Langly Co. issued ten-year bonds ith a face value of $1,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table value are:
Present value of 1 for 10 periods at 10%...................0.386
Present value of 1 for 10 periods at 12%...................0.322
Present value of 1 for 20 periods at 5%...................0.377
Present value of 1 for 20 periods at 10%...................0.312
Present value of annuity for 10 periods at 10%.............6.145
Present value of annuity for 10 periods at 12%.............5.650
Present value of annuity for 20 periods at 5%............12.462
Present value of annuity for 20 periods at 6%............11.470
a. Calculate the issue price of the bonds.
b. Without prejudice to your solution in part (a), assume that the issue price was $ 884,000. Prepare the amortization table for 2008, assuming that amortization is recorded on interest payment dates.
Date Cash Expense Amortization Carryin Amount
1/1/08
6/30/08
12/31/08
Purchase this Solution
Solution Summary
Calculates the issue price of the bonds and prepares the amortization schedule.
Purchase this Solution
Free BrainMass Quizzes
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.