on january 1, 2008, langly

Project Description:

on january 1, 2008, langly co. issued ten-year bonds with 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 values 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 6% 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

instructions:
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 carrying amount
1/1/08
6/30/08
12/31/08
Skills Required:
Project Stats:

Price Type: Negotiable

Expired
Total Proposals: 1
1 Current viewersl
7 Total views
Project posted by:

Proposals

Proposals Reputation Price offered
  • 4.8
    546 Jobs 386 Reviews
    $10 in 0 Day