Montana Inc. issued $900,000 of 12-year bonds with a stated rate of 8% when the market rate was 9%.The bonds pay interest semi-annually. Assume that the bonds were issued for $883,386. Prepare Inamortization table for the first three payments.SemiannualSemiannualSemiannualAmortization of Ending CarryingInterestInterest Expense Interest PaymentDiscountValuePeriod1PLEASE NOTE: All dollar amounts will be rounded to whole dollars using "$" and commas as needed(i.e. $12,345).

Solution: Face value of bond = $900,000 Issue price of bond = $883,386 Discount on issue of bond =…

Montana Inc. issued $900,000 of 12-year bonds with a stated rate of 8% when the market rate was 9 The bonds pay interest semi-annually. Assume that the bonds were issued for $883,386. Prepare In amortization table for the fırst three payments. Semiannual Semiannual Semiannual Amortization of Ending Carrying Interest Interest Expense Interest Payment Discount Value Period 1 3 2.

Montana Inc. issued $900,000 of 12-year bonds with a stated rate of 8% when the market rate was 9 The bonds pay interest semi-annually. Assume that the bonds were issued for $883,386. Prepare In amortization table for the fırst three payments. Semiannual Semiannual Semiannual Amortization of Ending Carrying Interest Interest Expense Interest Payment Discount Value Period 1 3 2.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5EB: Haiku Inc. issued $600,000 of 10-year bonds with a stated rate of 11% when the market rate was 12%....

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