Old School Vacations issued $100,000, 10%, 10-year bonds on January 1, 2010, when the market rate of interest was 8%. Proceeds were $113,420.16. Interest is payable annually on January 1. Old School uses the effective interest method to amortize bond premiums and discounts. Prepare an amortization schedule for the life of the bonds.
Answer to relevant QuestionsUsing the information provided for eBay, calculate the debt-to-equity ratio at December 31, 2007, and December 31, 2008. (Notice that eBay puts the most recent year in the right column rather than the usual left column.) ...Mark’s Martial Arts Academy needed some long-term financing and arranged for a $200,000, 20-year mortgage loan on December 31, 2009. The interest rate is 7.5% per year, with $19,620 (rounded) payments made at the end of ...On June 30, 2010, McCorvey’s Lawn Service issued $7,500 worth of 6% bonds at approximately 102. These are five-year bonds with interest paid semiannually on December 31 and June 30.1. What are the interest payments for the ...On March 1, 2011, the accounting records of Stein Company showed the following liability accounts and balances:Accounts payable ........... $21,600Short-term notes payable ........ 10,000Interest payable .......... ...Black Company is making plans to finance the following projects:a. Purchase a boat for $50,000 to be repaid in equal monthly payments of $977.51 over the next six years. The bank has quoted an interest rate of 12%.b. ...
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