On January 1, 2022, McMillan Corporation issued $100,000 par value, 5-year, zero-coupon bonds. The market rate of interest on the date of the bond issue was 6%. The company's fiscal year ends on December 31. Future Value of $1 table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table Present Value of $1 table Present Value of an Ordinary Annuity table Present Value of an Annuity Due table Read the requirements. Requirement a. Determine the issue price of the debt. (Use the present value and future value tab formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final a The issue price of the debt is = Requirements a. Determine the issue price of the debt. b. Prepare the amortization table for the bond issue through January 1, 2025, assuming that McMillan uses the effective interest rate method of amortization. c. Prepare the journal entries to record the bond issue, the amortization entry on December 31, 2022, and payment of the bonds at maturity. Assume that the company uses a premium or discount account if needed. Print Done - or the
On January 1, 2022, McMillan Corporation issued $100,000 par value, 5-year, zero-coupon bonds. The market rate of interest on the date of the bond issue was 6%. The company's fiscal year ends on December 31. Future Value of $1 table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table Present Value of $1 table Present Value of an Ordinary Annuity table Present Value of an Annuity Due table Read the requirements. Requirement a. Determine the issue price of the debt. (Use the present value and future value tab formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final a The issue price of the debt is = Requirements a. Determine the issue price of the debt. b. Prepare the amortization table for the bond issue through January 1, 2025, assuming that McMillan uses the effective interest rate method of amortization. c. Prepare the journal entries to record the bond issue, the amortization entry on December 31, 2022, and payment of the bonds at maturity. Assume that the company uses a premium or discount account if needed. Print Done - or the
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 16E
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