Question: hi, im having trouble solving this problem from the book fundementwl of accounting chapter 14, problem 14.6B thank you. Problem 14-6B Bonds issued at a
Problem 14-6B Bonds issued at a discount and premium using business calculator PV function LO4.5.6 Xcel Problem 14-6B Excel template CHECK FIGURES: 1a. $883,157; 2a. $908,561 On February 1, 2017, Fireside Corp. issued a $900,000, 5%, two-year bond. Interest is payable quarterly each May 1, August 1, November 1, and February 1. Required Part 1 a. Calculate the bond issue price assuming a market interest rate of 6% on the date of issue. b. Using the effective interest method, prepare an amortization schedule. C Page 939 d. Record the entry for the issuance of the bond on February 1; the adjusting entry to accrue bond interest and related amortization on March 31, 2017, Fireside Corp.'s year-end; and the payment of interest on May 1, 2017 e. Record the entry for the retirement of the shares at 101, on February 1, 2018, one year early, and after the interest payment. Part 2 a. Calculate the bond issue price assuming a market interest rate of 4.5% on the date of issue. b. Using the effective interest method, prepare an amortization schedule. c. Record the entries for the issuance of the bond on February 1; the adjusting entry to accrue bond interest and related amortization on March 31, 2017, Fireside Corp.'s year-end; and the payment of interest on May 1, 2017
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