Question: Scenario 3: Issuing Bond @ Premium using Effective Interest Rate Method NLC Corp issues 10 $1,000 bonds with a coupon rate of 5% on Jan

Scenario 3: Issuing Bond @ Premium using Effective Interest Rate Method NLC Corp issues 10 $1,000 bonds with a coupon rate of 5% on Jan 1, 2014. These bonds mature in 5 years and interest is paid semi annually. The market rate at the time of issuance is 4%. 1-Calculate the price of this bond (show ALL calculations) 2- Complete the effective interest amortization table for this bond below: Date Cash interest payment Bond interest expense Premium amortization Unamortized premium Carrying value 1/1/2014 6/30/2014 12/31/2014 6/30/2015 12/31/2015 6/30/2016 12/31/2016 6/30/2017 12/31/2017 6/30/2018 12/31/2018 Total 10,000 3- Record all the journal entries using the journal below Date Accounts Debit Credit 1/1/2014 (Issuance date) 6/30/2014 12/31/2014 6/30/2015 12/31/2015 6/30/2016 12/31/2016 6/30/2017 12/31/2017 6/30/2018 12/31/2018 (Maturity date)

please don,t copy paste the answer i want primeum one

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!