Please Correct answer with Explanation Calculations Marketing Inc. issued 8.5% bonds with a par value of $530,000 and a five-year life on January 1, 2023, for$540,747. The bonds pay interest on June 30 and December 31. The market interest rate was 8% on the original issue date. UseTABLE 14A1 and TABLE 14A.2. (Use appropriate factor(s) from the tables provided.)Required:1. Calculate the total bond interest expense over the life of the bonds.Total interest expense2. Prepare an amortization table using the effective interest method. (Do not round intermediate calculations. Round the finalanswers to the nearest whole dollar.)Period Cash InterestEndingPaidJan, 1/23June 30/23PeriodInterestExpensePremiumAmort.UnamortizedpremiumCarrying Value 2. Prepare an amortization table using the effective interest method. (Do not round intermediate calculations. Round the finalanswers to the nearest whole dollar.)PeriodEndingJan, 1/23June 30/23www.Dec. 31/23BeddendamJune 30/24WWW.CENDec. 31/24FJune 30/25Dard sorzeDec. 31/25June 30/26Dec. 31/26June 30/27Dec. 31/27TotalsCash InterestPaidShow Transcribed TextView transaction listPeriodInterest.ExpenseJournal entry worksheet<23. Show the journal entries that Calculations Marketing Inc. would make to record the first two interest payments assuming aDecember 31 year-end. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)DateJune 30, 2023Note: Enter debits before credits.ÞRecord the six months' interest and premium amortization.Show Transcribed TextPremiumAmort.Present value of the remaining cash flows4UnamortizedpremiumShow Transcribed Text3General JournalCarrying ValueDebitCredit4. Use the original market interest rate to calculate the present value of the remaining cash flows for these bonds as ofDecember 31, 2025. Compare your answer with the amount shown on the amortization table as the balance for that date. (Donot round intermediate calculations. Round the final answers to the nearest whole dollar)>

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Calculations Marketing Inc. issued 8.5% bonds with a par value of $530,000 and a five-year life on January 1, 2023, for $540,747. The bonds pay interest on June 30 and December 31. The market interest rate was 8% on the original issue date. Use TABLE 14A1 and TABLE 14A.2. (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the total bond interest expense over the life of the bonds. Total interest expense 2. Prepare an amortization table using the effective interest method. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) Period Ending Jan, 1/23 June 30/23 Cash Interest Paid Period Interest Expense Premium Unamortized Amort. premium Carrying Value

Calculations Marketing Inc. issued 8.5% bonds with a par value of $530,000 and a five-year life on January 1, 2023, for $540,747. The bonds pay interest on June 30 and December 31. The market interest rate was 8% on the original issue date. Use TABLE 14A1 and TABLE 14A.2. (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the total bond interest expense over the life of the bonds. Total interest expense 2. Prepare an amortization table using the effective interest method. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) Period Ending Jan, 1/23 June 30/23 Cash Interest Paid Period Interest Expense Premium Unamortized Amort. premium Carrying Value

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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