please note that the cash paid should be $420.00 each period NOT $450.00 5) Winter Nights Inc.

please note that the cash paid should be $420.00 each period NOT $450.00

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5) Winter Nights Inc. (WNC) issued bonds and received cash in full for the issue price. The bonds were dated and issued on January 1, 2023. The coupon rate was payable at the end of year. The bonds mature at the end of four years. The following schedule has been partly completed: Cash Date January 1, 2023 Paid Interest Expense Carrying Amortization Amount $6,207.91 End of year 2023 $450.00 $368.02 $51.98 6,155.93 End of year 2024 450.00 ? 6,103.95 End of year 2025 450.00 ? End of year 2026 450.00 ? ? 6,000.00 Required (18 marks): a) Complete the amortization schedule. b) What was the maturity amount of the bonds? c) How much cash was received at the date of issuance (sale) of the bonds? d) What was the amount of discount or premium on the bond? Be clear if it is a discount or premium. e) How much cash will be paid for interest in total for the full life of the bond issue? f) What is the coupon rate of interest? g) What is the effective rate of interest? h) What amount of interest should be reported on the statement of earnings each year? 5) Winter Nights Inc. (WNC) issued bonds and received cash in full for the issue price. The bonds were dated and issued on January 1, 2023. The coupon rate was payable at the end of year. The bonds mature at the end of four years. The following schedule has been partly completed: Cash Date January 1, 2023 Paid Interest Expense Carrying Amortization Amount $6,207.91 End of year 2023 $450.00 $368.02 $51.98 6,155.93 End of year 2024 450.00 ? 6,103.95 End of year 2025 450.00 ? End of year 2026 450.00 ? ? 6,000.00 Required (18 marks): a) Complete the amortization schedule. b) What was the maturity amount of the bonds? c) How much cash was received at the date of issuance (sale) of the bonds? d) What was the amount of discount or premium on the bond? Be clear if it is a discount or premium. e) How much cash will be paid for interest in total for the full life of the bond issue? f) What is the coupon rate of interest? g) What is the effective rate of interest? h) What amount of interest should be reported on the statement of earnings each year?

Answer rating: 100% (QA)

Okay lets calculate the amortization schedule for the bonds issued by Winter Nights Inc WNC based on ... View the full answer