NLC Corp issues 10 $1,000 bonds with a coupon rate of 5% on Jan 1,...
80.2K
Verified Solution
Link Copied!
Question
Accounting
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 Carrying value Bond interest expense Premium amortization Unamortized premium 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 II 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)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
