On 1/1/2022, Needy Inc. issues a 7-year, semi-annual bond, with a face value of $500,000, coupon rate of 5.5%, and market rate of 4.5%. Interest is paid on 6/30 and 12/31:

a. Make the amortization table for all periods 

b. What are the total interest expense and total interest paid for the life of the bonds? 

c. Make the following journal entries and effects: 

i. To issue the bonds on 1/1/2022 

ii. The first interest entry on 6/30/2022 

iii. The 2nd interest entry on 12/31/2022

iv. The entry to pay off the principal at the end.

d. What are the proceeds if the coupon rate is 5.1% and the market rate is 6.8%? Make the amortization.

Answer rating: 100% (QA)

a Amortization Table Period Beginning Balance Coupon Interest Principal Payment Ending Balance 112022 500000 22500 0 500000 6302022 500000 22500 19666... View the full answer