On June 30, 2021, the market interest rate is 9%. Randall Corporation issues $600,000 of 10%, 15-year
Question:
On June 30, 2021, the market interest rate is 9%. Randall Corporation issues $600,000 of 10%, 15-year bonds payable. The bonds pay interest on June 30 and December 31. The company amortizes bond premium using the effective-interest method.
Requirements
1. Use the PV function in Excel to calculate the issue price of the bonds.
2. Prepare a bond amortization table for the term of the bonds using Excel.
3. Record the issuance of bonds payable on June 30, 2021; the payment of interest on December 31, 2021; and the payment of interest on June 30, 2022.
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