Calculations Marketing Inc. issued 12.0% bonds with a par value of $490,000 and a five-year...
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Accounting
Calculations Marketing Inc. issued bonds with a par value of $ and a fiveyear life on January for $ The bonds pay interest on June and December The market interest rate was on the original issue date. Use TABLE A and TABLE AUse appropriate factors from the tables provided.
Required:
Calculate the total bond interest expense over the life of the bonds.
Prepare an amortization table using the effective interest method. Do not round intermediate calculations. Round the final answers to the nearest whole dollar.
Show the journal entries that Calculations Marketing Inc. would make to record the first two interest payments assuming a December yearend. Do not round intermediate calculations. Round the final answers to the nearest whole dollar.
Use the original market interest rate to calculate the present value of the remaining cash flows for these bonds as of December Compare your answer with the amount shown on the amortization table as the balance for that date. Do not round intermediate calculations. Round the final answers to the nearest whole dollar.
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