On February 1, 2021, Malawi ltd, issued a 4.5%, 8-year bond with a face value of 450,000. The semi-annual interest (Coupon) Payments are made on January 31 and July 31. Nikawi LTD receives $407,606 in cash. The company uses the effective interest method. The market rate is 6% Prepare a bond amortization table for the first two semi-annual interest periods. Record the journal entries for the insurance of the bond on February 1st, 2021 and the semi annual interest payments for July 31st, 2021, and January 31st 2022 Add on questions What is the interest payment on July 31st, 2021 What is the interest expense on July 31st, 2021 What is the carrying amount of the bond July 31st, 2021 What is the interest payment on January 31st, 2022 What is the interest expense on January 31st, 2022 What is the carrying amount of the bond on January 31st, 2022.
On February 1, 2021, Malawi ltd, issued a 4.5%, 8-year bond with a face value of 450,000. The semi-annual interest (Coupon) Payments are made on January 31 and July 31. Nikawi LTD receives $407,606 in cash. The company uses the effective interest method. The market rate is 6% Prepare a bond amortization table for the first two semi-annual interest periods. Record the journal entries for the insurance of the bond on February 1st, 2021 and the semi annual interest payments for July 31st, 2021, and January 31st 2022 Add on questions What is the interest payment on July 31st, 2021 What is the interest expense on July 31st, 2021 What is the carrying amount of the bond July 31st, 2021 What is the interest payment on January 31st, 2022 What is the interest expense on January 31st, 2022 What is the carrying amount of the bond on January 31st, 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On February 1, 2021, Malawi ltd, issued a 4.5%, 8-year bond with a face value of 450,000. The semi-annual interest (Coupon) Payments are made on January 31 and July 31. Nikawi LTD receives $407,606 in cash. The company uses the effective interest method. The market rate is 6%
- Prepare a bond amortization table for the first two semi-annual interest periods.
- Record the
journal entries for the insurance of the bond on February 1st, 2021 and the semi annual interest payments for July 31st, 2021, and January 31st 2022 - Add on questions
- What is the interest payment on July 31st, 2021
- What is the interest expense on July 31st, 2021
- What is the carrying amount of the bond July 31st, 2021
- What is the interest payment on January 31st, 2022
- What is the interest expense on January 31st, 2022
- What is the carrying amount of the bond on January 31st, 2022.
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