Mazeltov Corporation issued $100,000 3-year, 8% stated rate bonds on January 1, 2004. The bonds pay...

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Mazeltov Corporation issued $100,000 3-year, 8% stated rate bonds on January 1, 2004. The bonds pay interest semi-annually and were sold when the market rate was 10%. a. Calculate the issue price of the bonds. b. Prepare an amortization schedule for the bonds (use the table below): Payment Carrying Value, Amortization Date beginning 6/30/04 12/31/04 6/30/05 12/31/05 6/30/06 12/31/06 Cash Interest Interest Expense c. Record the interest expense entry for the 6/30/05 interest payment: Accounts Debits Credits Carrying Value, ending Mazeltov Corporation issued $100,000 3-year, 8% stated rate bonds on January 1, 2004. The bonds pay interest semi-annually and were sold when the market rate was 10%. a. Calculate the issue price of the bonds. b. Prepare an amortization schedule for the bonds (use the table below): Payment Carrying Value, Amortization Date beginning 6/30/04 12/31/04 6/30/05 12/31/05 6/30/06 12/31/06 Cash Interest Interest Expense c. Record the interest expense entry for the 6/30/05 interest payment: Accounts Debits Credits Carrying Value, ending

Answer rating: 100% (QA)

a Calculate the issue price of the bonds The issue price of the bonds is the present value of the pr... View the full answer