OHalloran Inc. produces and sells outdoor equipment. On July 1, Year 1, OHalloran Inc. issued...
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OHalloran Inc. produces and sells outdoor equipment. On July 1, Year 1, OHalloran Inc. issued $32,000,000 of six-year, 8% bonds at a market (effective) interest rate of 7%, receiving cash of $33,546,022. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
1. Using Excel Present Value function, prove that the present value of $33,546,022 is accurate.
2.Prepare the journal entry when the bond was issued.
3.Prepare the journal entry for the first interest to the bondholders
4. Prepare the amortization journal entry
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