Excelsior Corp. sold $1, 500, 000 of five-year, 12% bonds on August 1, 2010. The effective...

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Excelsior Corp. sold $1, 500, 000 of five-year, 12% bonds on August 1, 2010. The effective interest rate is 10% and the interest payment dates are July 31st and January 31st of each year. Excelsior has a December 31st year end and the company uses the effective interest rate method to amortize the bond discount/premium. On July 31, 2015, the maturity date, the value of Cash in the journal entry of Excelsior Corp. would be: $ 1,615, 803 $ 1,500, 000 $ 694, 953 XNone of the other alternatives are correct $ 920, 850 Excelsior Corp. sold $1, 500, 000 of five-year, 12% bonds on August 1, 2010. The effective interest rate is 10% and the interest payment dates are July 31st and January 31st of each year. Excelsior has a December 31st year end and the company uses the effective interest rate method to amortize the bond discount/premium. On July 31, 2015, the maturity date, the value of Cash in the journal entry of Excelsior Corp. would be: $ 1,615, 803 $ 1,500, 000 $ 694, 953 XNone of the other alternatives are correct $ 920, 850

Answer rating: 100% (QA)

a Semiannual Coupon Amount 9000000 1500000122 b Present Value An... View the full answer