bond contract rate=7% semi-anual bond par=$10,000 bond market =6% semi-annual bond life =10 years  1) find the selling price of this bond  2) will it be sold at a discount or premium 3) do the journal entry for the issuance 4) calculate the discount/premium authorization per period (use the sightline method ) 5 )do the entry for the payment of cash interest period 6) do the entry for the amortization of the discount /premium per period  7) find total interest expense per period  8) show the balance sheet presentation of the bond after two periods have elapsed

Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter11: Bond Pricing And Amortization (bonds)
Section: Chapter Questions
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bond contract rate=7% semi-anual

bond par=$10,000

bond market =6% semi-annual

bond life =10 years 

1) find the selling price of this bond 

2) will it be sold at a discount or premium

3) do the journal entry for the issuance

4) calculate the discount/premium authorization per period (use the sightline method )

5 )do the entry for the payment of cash interest period

6) do the entry for the amortization of the discount /premium per period 

7) find total interest expense per period 

8) show the balance sheet presentation of the bond after two periods have elapsed

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