Question: please answer e-h P15-7A On January 1, 2017, Alberta Hydro Ltd. issued bonds with a maturity value of $8 million when the market rate of

P15-7A On January 1, 2017, Alberta Hydro Ltd. issued bonds with a maturity value of $8 million when the market rate of interest was 4%. The bonds have a coupon (contractual) interest rate of 5% and mature on January 1, 2027. Inter- est on the bonds is payable semi-annually on July 1 and January 1 of each year. The company's year end is December 31. ER 15 Non-Current Liabilities Instructions (a) Calculate the issue price of the bonds (b) Prepare a bond amortization schedule from the date of issue up to and including January 1, 2019 (c) Prepare all of the required journal entries related to the bonds that Alberta Hydro will record during 2017, including any adjusting journal entries at December 31, 2017. (d) What amounts would be reported as current and non-current in the liabilities section of Alberta Hydros December 31, 2017, balance sheet? (e) Record the payment of interest on January 1, 2018 () The bonds were redeemed on January 1, 2019 (after the interest had been paid and recorded) at 102. Prepure the journal entry for the redemption of the bonds. (g) Assume instead that the bonds were not redeemed on January 1, 2019. Record the entry for the repayment ef the bonds on January 1, 2027. (h) What will be the total interest payment over the 10-year life of the bonds? What will be the total interes expense over the 10-year life of the bonds? TAKING IT FURTHER Explain why the total interest payment over the 10-year life of the bonds is equal to cr different than the total interest expense over the 10-year life of the bonds
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