Evergreen Corporation issued 100,000 of 8% term bonds on January 1, 2015, due on January 1,...

 

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Evergreen Corporation issued €100,000 of 8% term bonds on January 1, 2015, due on January 1, 2020, with interest payable each July 1 and January 1. Investors require an effective-interest rate of 10%. Calculate the bond proceeds. You are required to: 1. calculate the discount on bonds payable (note that the proceeds from sale of bonds is 92,278). 2 Complete the below schedule of bond discount amortization. Carrying Amount of Bonds € 92,278 Date Cash Paid Interest Expense Discount Amortized 1/1/2015 Evergreen Corporation issued €100,000 of 8% term bonds on January 1, 2015, due on January 1, 2020, with interest payable each July 1 and January 1. Investors require an effective-interest rate of 10%. Calculate the bond proceeds. You are required to: 1. calculate the discount on bonds payable (note that the proceeds from sale of bonds is 92,278). 2 Complete the below schedule of bond discount amortization. Carrying Amount of Bonds € 92,278 Date Cash Paid Interest Expense Discount Amortized 1/1/2015

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Answer1 Calculation Discount on Bond Face Value of Bonds Issue Price of Bond... View the full answer