On January 1, 2024, Lakeside Amusement Park issues $660,000 of 5% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Assume that the market interest rate is 5% and the bonds issue at face amount. Required: 1a. Calculate the issue price of a bond. 1b. Complete the first three rows of an amortization schedule. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Assume that the market interest rate is 6% and the bonds issue at a discount. 2a. Calculate the issue price of a bond. 2b. Complete the first three rows of an amortization schedule. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Assume that the market interest rate is 4% and the bonds issue at a premium. 3a. Calculate the issue price of a bond. 3b. Complete the first three rows of an amortization schedule. (FV of $1, PV of $1. FVA of $1, and PVA of $1) Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 2B Complete the first three rows of an amortization schedule. Date 1/1/2024 6/30/2024 12/31/2024 Required 3A Cash Paid Interest Expense Change In Carrying Value Required 3B Carrying Value

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2024, Lakeside Amusement Park issues $660,000 of 5% bonds, due in 20 years, with interest payable semiannually on
June 30 and December 31 each year.
Assume that the market interest rate is 5% and the bonds issue at face amount.
Required:
1a. Calculate the issue price of a bond.
1b. Complete the first three rows of an amortization schedule. (FV of $1, PV of $1. FVA of $1, and PVA of $1)
Assume that the market interest rate is 6% and the bonds issue at a discount.
2a. Calculate the issue price of a bond.
2b. Complete the first three rows of an amortization schedule. (FV of $1. PV of $1. FVA of $1, and PVA of $1)
Assume that the market interest rate is 4% and the bonds issue at a premium.
3a. Calculate the issue price of a bond.
3b. Complete the first three rows of an amortization schedule. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
Complete this question by entering your answers in the tabs below.
Required 1A
Date
Required 1B
Complete the first three rows of an amortization schedule.
1/1/2024
6/30/2024
12/31/2024
Required 2A Required 2B Required 3A
Cash Paid Interest Expense
Change in
Carrying Value
Required 3B
Carrying Value
Transcribed Image Text:57 s On January 1, 2024, Lakeside Amusement Park issues $660,000 of 5% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Assume that the market interest rate is 5% and the bonds issue at face amount. Required: 1a. Calculate the issue price of a bond. 1b. Complete the first three rows of an amortization schedule. (FV of $1, PV of $1. FVA of $1, and PVA of $1) Assume that the market interest rate is 6% and the bonds issue at a discount. 2a. Calculate the issue price of a bond. 2b. Complete the first three rows of an amortization schedule. (FV of $1. PV of $1. FVA of $1, and PVA of $1) Assume that the market interest rate is 4% and the bonds issue at a premium. 3a. Calculate the issue price of a bond. 3b. Complete the first three rows of an amortization schedule. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Complete this question by entering your answers in the tabs below. Required 1A Date Required 1B Complete the first three rows of an amortization schedule. 1/1/2024 6/30/2024 12/31/2024 Required 2A Required 2B Required 3A Cash Paid Interest Expense Change in Carrying Value Required 3B Carrying Value
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