On June 30, 2021, the market interest rate is 9%. Ramsey Corporation issues $550,000 of 12%, 20-year

Question:

On June 30, 2021, the market interest rate is 9%. Ramsey Corporation issues $550,000 of 12%, 20-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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Financial Accounting

ISBN: 9780136899037

13th Edition

Authors: C. William Thomas, Wendy M Tietz

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Question Posted: Feb 18, 2023 09:18 AM

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On June 30, 2021, the market interest rate is 9%. Ramsey Corporation issues $550,000 of 12%, 20-year

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Req 1 Using the PV function in EXCEL the issue price of the bonds is 701813 Req 2 amortization table ...View the full answer

Financial Accounting

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