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Phormer Company issued ten-year, 10% term bonds with a face value of $500,000 at a...

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Accounting

Phormer Company issued ten-year, 10% term bonds with a face value of $500,000 at a yield rate of 12%. Interest is payable semiannually on 6/30 and 12/31 and the company uses the effective interest method of amortization.

A) Prove the issue price of the bonds was $422,650

B) Prepare an amortization schedule with columns that show interest expense, cash interest, discount amortization, and carrying value for each six-month period, plus totals for the life of the bond issue.

C) Show cell equations

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