On January 1, 2024, Paradise Hollow Resort issues $36 million of bonds that pay interest and December 31. Portions of the bond amortization schedule appear below: (1) Date (2) Cash Paid for (3) Interest Interest Expense 1/1/2024 6/30/2024 $1,440,000 12/31/2024 1,440,000 $1,514,636 1,517,994 Increase in Carrying Value $74,636 77,994 (5) Carrying Value $33,658,571 33,733,207 33,811, 201
On January 1, 2024, Paradise Hollow Resort issues $36 million of bonds that pay interest and December 31. Portions of the bond amortization schedule appear below: (1) Date (2) Cash Paid for (3) Interest Interest Expense 1/1/2024 6/30/2024 $1,440,000 12/31/2024 1,440,000 $1,514,636 1,517,994 Increase in Carrying Value $74,636 77,994 (5) Carrying Value $33,658,571 33,733,207 33,811, 201
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![[The following information applies to the questions displayed below.]
On January 1, 2024, Paradise Hollow Resort issues $36 million of bonds that pay interest semiannually on June 30
and December 31. Portions of the bond amortization schedule appear below:
(2)
Cash Paid for
Interest Interest Expense
(1)
Date
1/1/2024
6/30/2024 $1.440,000
12/31/2024 1,440,000
Problem 9-6A (Algo) Part 3
Face amount
(3)
$1.514.636
1,517,994
Increase in
Carrying
Value
$74.636
77,994
(5)
Carrying
Value
$33,658,571
33,733,207
33,811,201
3. What is the face amount of the bonds? (Enter your answer in whole dollars, not millions (i.e., $5.5 million should be
entered as 5,500,000).)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9d96c433-4ae2-4ffe-8547-46920e3c1bcb%2F3928b635-1a02-4d46-852c-3e8cf8e4ad8a%2Fyfpvfm9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
On January 1, 2024, Paradise Hollow Resort issues $36 million of bonds that pay interest semiannually on June 30
and December 31. Portions of the bond amortization schedule appear below:
(2)
Cash Paid for
Interest Interest Expense
(1)
Date
1/1/2024
6/30/2024 $1.440,000
12/31/2024 1,440,000
Problem 9-6A (Algo) Part 3
Face amount
(3)
$1.514.636
1,517,994
Increase in
Carrying
Value
$74.636
77,994
(5)
Carrying
Value
$33,658,571
33,733,207
33,811,201
3. What is the face amount of the bonds? (Enter your answer in whole dollars, not millions (i.e., $5.5 million should be
entered as 5,500,000).)
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