Question: Cumming Corp. issues a $6,000,000, 5% bond on 1 April 20X3. At this time, market interest rates are in the range of 6%. The bond

Cumming Corp. issues a $6,000,000, 5% bond on 1 April 20X3. At this time, market interest rates are in the range of 6%. The bond had a 10-year life from 1 April 20X3, and paid interest semi-annually on 31 March and 30 September. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.)

Required: 1. Calculate the proceeds that would be raised on bond issuance. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

2. Prepare an amortization table using the effective interest method of amortization. Complete the first four payments only. (Round your answers to the nearest whole dollar amount.)

periodcash interest paymentinterest expenceD or P amortizationloosing net bond liability1 2 3 4

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