Note & Bond Extra Credit Project: Compute the answer to each of the following independent situations. ZBar Extra Credit Project Bond Information: 1) ZBar sells 40 bonds with a face value of $10,000 each on January 1, 2018 2) The board of directors determines these bonds will have a 5 year life, have a stated rate of 18%. and pay interest semiannually. 3) The current market rate is found to be 12% on the date of sale. Calculation of Cash Proceeds: Step 1: Cash Payment of Interest Step 2: Present Values of Paid Amounts Partial Repayment Schedule (Just the first 4 periods) Cash PMT Interest Expense Face Value Carrying Value Date Amort. Premium START Period # 1 1/1/2018 6/30/2018 Period # 2 12/31/2018 Period #3 6/30/2019 Period #4 12/31/2019 Journal Entries: Recording the issuance/receipt of the bond: Account Name Debit Credit Recording interest payments: Account Name Debit Credit ZBar Second Problem Bond Information: 1) ZBar sells 40 bonds with a face value of $10,000 each on January 1, 2018. 2) The board of directors determines these bonds will have a 5 year life, have a stated rate of 18%. and pay interest semiannually. 3) The current market rate is found to be 20% on the date of sale. Calculation of Cash Proceeds: Step 1: Cash Payment of Interest Step 2: Present Values of Paid Amounts Partial Repayment Schedule (Just the first 4 periods) Cash PMT Interest Expense Face Value Carrying Value Date Amort. Discount START 1/1/2018 Period #1 Period # 2 6/30/2018 12/31/2018 6/30/2019 12/31/2019 Period # 3 Period #4 Journal Entries: Recording the issuance/receipt of the bond: Account Name Debit Credit Recording interest payments: Account Name Debit Credit Magic Finger Problem Information: Magic Fingers Massage Parlor, Inc. agrees to a loan with the following terms on January 1, 2018. 1) 3 year life, has a stated rate of 16%, and pays interest semiannually. 2) The initial amount borrowed was $12,000. Calculation of Payments: Partial Repayment Schedule (Just the first 4 periods) Cash Payment Interest Expense Principal Reduction Carrying Value Date START Period # 1 Period # 2 1/1/2018 6/30/2018 1/1/2019 6/30/2019 12/31/2019 Period # 3 Period #4 Note & Bond Extra Credit Project: Compute the answer to each of the following independent situations. ZBar Extra Credit Project Bond Information: 1) ZBar sells 40 bonds with a face value of $10,000 each on January 1, 2018 2) The board of directors determines these bonds will have a 5 year life, have a stated rate of 18%. and pay interest semiannually. 3) The current market rate is found to be 12% on the date of sale. Calculation of Cash Proceeds: Step 1: Cash Payment of Interest Step 2: Present Values of Paid Amounts Partial Repayment Schedule (Just the first 4 periods) Cash PMT Interest Expense Face Value Carrying Value Date Amort. Premium START Period # 1 1/1/2018 6/30/2018 Period # 2 12/31/2018 Period #3 6/30/2019 Period #4 12/31/2019 Journal Entries: Recording the issuance/receipt of the bond: Account Name Debit Credit Recording interest payments: Account Name Debit Credit ZBar Second Problem Bond Information: 1) ZBar sells 40 bonds with a face value of $10,000 each on January 1, 2018. 2) The board of directors determines these bonds will have a 5 year life, have a stated rate of 18%. and pay interest semiannually. 3) The current market rate is found to be 20% on the date of sale. Calculation of Cash Proceeds: Step 1: Cash Payment of Interest Step 2: Present Values of Paid Amounts Partial Repayment Schedule (Just the first 4 periods) Cash PMT Interest Expense Face Value Carrying Value Date Amort. Discount START 1/1/2018 Period #1 Period # 2 6/30/2018 12/31/2018 6/30/2019 12/31/2019 Period # 3 Period #4 Journal Entries: Recording the issuance/receipt of the bond: Account Name Debit Credit Recording interest payments: Account Name Debit Credit Magic Finger Problem Information: Magic Fingers Massage Parlor, Inc. agrees to a loan with the following terms on January 1, 2018. 1) 3 year life, has a stated rate of 16%, and pays interest semiannually. 2) The initial amount borrowed was $12,000. Calculation of Payments: Partial Repayment Schedule (Just the first 4 periods) Cash Payment Interest Expense Principal Reduction Carrying Value Date START Period # 1 Period # 2 1/1/2018 6/30/2018 1/1/2019 6/30/2019 12/31/2019 Period # 3 Period #4