Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2016, emily tax services issued $200

On January 1, 2016, Emily Tax Services issued $200,000, 9%,four-year bonds. Interest is paid...

70.2K

Verified Solution

Question

Accounting

On January 1, 2016, Emily Tax Services issued $200,000, 9%,four-year bonds. Interest is paid semiannually on June 30 andDecember 31. The bonds were issued when the market rate was 8%.Required:

5.Find the selling price of the Bonds

6.Prepare an amortization schedule that determines interest atthe effective interest rate.

7.Prepare an amortization schedule by the straight-linemethod.

8.Prepare the journal entries to record interest expense on June30, 2018, by each of the two approaches.

Please provide details formula.

Answer & Explanation Solved by verified expert
3.8 Ratings (472 Votes)
5 Amount Excel formula Present value of Maturity 146138 PV4802000000 Add Present value of Interest Payment 60595 PV482000004500 Selling price of Bonds 206733 6 Date Cash Interest Interest Expense Amortization of Bond Carrying 45 of 200000 4 of Carrying value    See Answer
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!
Become a Member

Transcribed Image Text

In: AccountingOn January 1, 2016, Emily Tax Services issued $200,000, 9%,four-year bonds. Interest is paid semiannually...On January 1, 2016, Emily Tax Services issued $200,000, 9%,four-year bonds. Interest is paid semiannually on June 30 andDecember 31. The bonds were issued when the market rate was 8%.Required:5.Find the selling price of the Bonds6.Prepare an amortization schedule that determines interest atthe effective interest rate.7.Prepare an amortization schedule by the straight-linemethod.8.Prepare the journal entries to record interest expense on June30, 2018, by each of the two approaches.Please provide details formula.

Other questions asked by students

Q

Consider the following information for a mutual fund, the market index, and the risk-free rate. You...

Finance
Q

a small buiness is recieving a five year $1,000,000 loan at subsidized rate of 3% per year....

Finance
Q

In the circuit shown when the input voltage of the base resistance is 10 V...

Physics
Q

Solve y y 2y 0 Solve 2y 4y 2y 0 Solve v 9v 0

Basic Math
Q

The price of a particular crop per bushel at time t in months is approximated...

Calculus
Q

Question 6 (of 8) value: 15.00 points Brower Inc. has provided the following data concerning...

Accounting
Q

How much would you have to invest today to receive: Use Appendix B and Appendix...

Accounting
Q

Henderson Company uses the gross profit method to estimate ending inventory and cost of goods...

Accounting
Q

ABC Corporation enters into a three-year employment contract with its CEO, who is a covered...

Accounting
Q

What are a few examples of variable and fixed manufacturing overhead costs that might be...

Accounting
Q

In the year, TGIT Inc. incurred the following costs: Direct materials $...

Accounting
Q

AKD Corporation has 200,000 share of $20 par common stock outstanding. On 18 February 2021,...

Finance