Glimmer Pools purchased $50,000 of 7% AKL bonds on January 1, 2018, at aprice of 104.2 when the market rate of interest was 6%. Glimmer intends to hold the bonds untiltheir maturity date of January 1, 2023. The bonds pay interest semiannually on each January 1and July 1. Calculate the amount of premium amortization (using the straight-line amortizationmethod) on July 1, 2018, and record the related journal entries. What is the total interest revenue for the first six months of 2018?

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A: 1. Price of the bonds = Present value of principal + Present value of interest payments = face value…

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A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

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A:

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A: BOND  Bond is a Financial Securities which is Generally Issued by the Corporation's, Government…

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A: Bonds: This is just like debt for the issue of investors by the company. Bond is dependent on the…

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A: Effective interest rate: It can be defined as the interest rate on borrowings or on any financial…

Q: Determine the present value of the bonds at issuance.

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A:

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A: Workings: Sold 10 % bonds

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