Prepare an additional 2 bond amortization tables for ISU assuming the straight-line amortization method was used since the results were not materially different from the effective interest method. (may need to manually enter the interest expense and discount/premium amortization on the last payment so that your carrying value of the bonds at 12/31/2019 is $50,000,000)
- On January 1, 2015 ISU issued 4%, 5 year bonds with a face amount of 50 million dollars to fund the renovation of the Arena building (and 12 new pickle ball courts). The market yield for bonds of similar risk and maturity was 5%. Interest is paid semiannually on June 30 and December 31. Prepare an amortization table for ISU assuming the effective interest method is used. Follow the format of the amortization table on page 14-10 schedule of bond discount amortization in your text. Round amounts to the nearest dollar. Include all 10 payments in your table and totals for cash paid, interest expense, and discount amortized.
2. Prepare an amortization table for ISU assuming the contract rate was 5%, the market rate was 4% and the effective interest method is used. Follow the format of the amortization table on page 14-11 schedule of bond premium amortization in your text. Round amounts to the nearest dollar. Include all 10 payments in your table and totals for cash paid, interest expense, and premium amortized.
3. Prepare an additional 2 bond amortization tables for ISU assuming the
(may need to manually enter the interest expense and discount/premium amortization on the last payment so that your carrying
I have added the first 2 for question basis but would like the 3rd answered please
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