vvany vuipulauomi33utu y T00,000 J ytai pulius Jalluaiy i, 2020. TIIT DUnUs pay imititsi amually aiu liavt a slaitu rate of 6%. The market on day of issue was 8%. Required 1 Determine the issue price (PV) of the bond. N (period of time) | (Interest) PV (Present Value FV (Future Value) PMT (Annuity) 2 Prepare the bond amortization schedule using the effective interest method. Cash Interest Interest Amortization of Year Discount Carrying Value Payment Expense Discount Jan 1, 2020 Dec 31, 2020 Page 1 Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 3 Record the necessary journal entry at date of issue and first interest payment. General Journal DR CR 4 Analyze the effect on the financial statements of the journal entry at date of issue (a) and the first interest payment (b). Assets = Liabilities + Equity Revenues - Expenses = Net Income la
vvany vuipulauomi33utu y T00,000 J ytai pulius Jalluaiy i, 2020. TIIT DUnUs pay imititsi amually aiu liavt a slaitu rate of 6%. The market on day of issue was 8%. Required 1 Determine the issue price (PV) of the bond. N (period of time) | (Interest) PV (Present Value FV (Future Value) PMT (Annuity) 2 Prepare the bond amortization schedule using the effective interest method. Cash Interest Interest Amortization of Year Discount Carrying Value Payment Expense Discount Jan 1, 2020 Dec 31, 2020 Page 1 Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 3 Record the necessary journal entry at date of issue and first interest payment. General Journal DR CR 4 Analyze the effect on the financial statements of the journal entry at date of issue (a) and the first interest payment (b). Assets = Liabilities + Equity Revenues - Expenses = Net Income la
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:vvany vuipulauomi33utu y T00,000 J ytai pulius Jalluaiy i, 2020. TIIT DUnUs pay imititsi amually aiu liavt a slaitu
rate of 6%. The market on day of issue was 8%.
Required
1 Determine the issue price (PV) of the bond.
N (period of time)
| (Interest)
PV (Present Value
FV (Future Value)
PMT (Annuity)
2 Prepare the bond amortization schedule using the effective interest method.
Cash Interest
Interest
Amortization of
Year
Discount
Carrying Value
Payment
Expense
Discount
Jan 1, 2020
Dec 31, 2020
Page 1
Dec 31, 2021
Dec 31, 2022
Dec 31, 2023
Dec 31, 2024
3 Record the necessary journal entry at date of issue and first interest payment.
General Journal
DR
CR
4 Analyze the effect on the financial statements of the journal entry at date of issue (a) and the first interest payment (b).
Assets =
Liabilities +
Equity
Revenues -
Expenses =
Net Income
la
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