On July 1, 2023, JMM Limited issued bonds with a face value of $930,000 due in 20 years, paying interest at a face rate of 8% on January 1 and July 1 each year. The bonds were issued to yield 10%. The company's year-end was September 30. The company used the effective interest method of amortization. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF 1. (a) Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the premium or discount on the bonds. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 5,275.) (b) Your answer is correct. $ Discount ✓on bond eTextbook and Media List of Accounts $ Cash Paid Prepare a partial Bond Premium/Discount Amortization Schedule for JMM Limited. Only prepare the entries in the schedule for July 1, 2023, January 1, 2024, and July 1, 2024. (Round answers to O decimal places, e.g. 5,275.) 159575 $ Interest Expense $ Attempts: 1 of 3 used Amortized $ Carrying Amount
On July 1, 2023, JMM Limited issued bonds with a face value of $930,000 due in 20 years, paying interest at a face rate of 8% on January 1 and July 1 each year. The bonds were issued to yield 10%. The company's year-end was September 30. The company used the effective interest method of amortization. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF 1. (a) Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the premium or discount on the bonds. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 5,275.) (b) Your answer is correct. $ Discount ✓on bond eTextbook and Media List of Accounts $ Cash Paid Prepare a partial Bond Premium/Discount Amortization Schedule for JMM Limited. Only prepare the entries in the schedule for July 1, 2023, January 1, 2024, and July 1, 2024. (Round answers to O decimal places, e.g. 5,275.) 159575 $ Interest Expense $ Attempts: 1 of 3 used Amortized $ Carrying Amount
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 13M
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![On July 1, 2023, JMM Limited issued bonds with a face value of $930,000 due in 20 years, paying interest at a face rate of 8% on
January 1 and July 1 each year. The bonds were issued to yield 10%. The company's year-end was September 30. The company used
the effective interest method of amortization.
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF 1.
(a)
Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the premium or discount on the bonds. (Round
factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 5,275.)
(b)
Your answer is correct.
$
Discount
on bond
eTextbook and Media
List of Accounts
Cash Paid
$
Prepare a partial Bond Premium/Discount Amortization Schedule for JMM Limited. Only prepare the entries in the schedule for
July 1, 2023, January 1, 2024, and July 1, 2024. (Round answers to O decimal places, e.g. 5,275.)
159575 i
$
Interest Expense
$
Attempts: 1 of 3 used
Amortized
$
Carrying Amount](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7c0ef7e3-d8ec-4ceb-a693-25abc04f060b%2F21df40c7-ebbd-42c7-932c-23133b4f69c4%2F5pp8cq_processed.png&w=3840&q=75)
Transcribed Image Text:On July 1, 2023, JMM Limited issued bonds with a face value of $930,000 due in 20 years, paying interest at a face rate of 8% on
January 1 and July 1 each year. The bonds were issued to yield 10%. The company's year-end was September 30. The company used
the effective interest method of amortization.
Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF 1.
(a)
Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the premium or discount on the bonds. (Round
factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 5,275.)
(b)
Your answer is correct.
$
Discount
on bond
eTextbook and Media
List of Accounts
Cash Paid
$
Prepare a partial Bond Premium/Discount Amortization Schedule for JMM Limited. Only prepare the entries in the schedule for
July 1, 2023, January 1, 2024, and July 1, 2024. (Round answers to O decimal places, e.g. 5,275.)
159575 i
$
Interest Expense
$
Attempts: 1 of 3 used
Amortized
$
Carrying Amount
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