1 On January 1, 2020, Bishop Company issued 12% bonds dated January 1, 2020, with a...
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1 On January 1, 2020, Bishop Company issued 12% bonds dated January 1, 2020, with a face amount of $20 million. The bonds mature in 10 years. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. Requirements: 1. Determine the price of the bonds at January 1, 2020. 2. Create an amortization table for the first 4 periods/payments. 3. Prepare the journal entry to record the bond issuance by Bishop on January 1, 2020. 4. Prepare the journal entry to record interest and note principal payment on December 31, 2029, using the effective interest method. 1 Bond Price 3&4 Journal Entries Amortization Table Period Cash Interest Amort Balance Calculations Here: 1 On January 1, 2020, Bishop Company issued 12% bonds dated January 1, 2020, with a face amount of $20 million. The bonds mature in 10 years. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. Requirements: 1. Determine the price of the bonds at January 1, 2020. 2. Create an amortization table for the first 4 periods/payments. 3. Prepare the journal entry to record the bond issuance by Bishop on January 1, 2020. 4. Prepare the journal entry to record interest and note principal payment on December 31, 2029, using the effective interest method. 1 Bond Price 3&4 Journal Entries Amortization Table Period Cash Interest Amort Balance Calculations Here:
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Answer Part 1 Price of the bond semiannual interest Present value annuity 520 ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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