Roarie LLC issued 10,000, $1,000 bonds on January 1, 2020. The bonds have a 10-year term and pay interestsemiannually. This is a partial bond amortization schedule for the bonds:CashPayment InterestA. $4,261,329B. $7,738,658C. $4,000,000D. $3,738,658Effective Decrease inInterestBalanceDisctCash1200,000313,067113,0672200,000318,720118,7203200,000324,657124,6574 200,000 330,889130,889What would be the total interest cost of the bonds over their full term?OutstandingBalance10,000,000(6,261,343)3,738,6584,000,0007,738,6586,261,3436,374,4106,493,1306,617,7876,748,676

Bonds offers periodic interest and pays the principal amount at maturity. When the bonds are issued…

Roarie LLC issued 10,000, $1,000 bonds on January 1, 2020. The bonds have a 10-year term and pay interest semiannually. This is a partial bond amortization schedule for the bonds: Payment A. $4,261,329 B. $7,738,658 C. $4,000,000 D. $3,738,658 Cash Interest Effective Decrease in Interest Balance Outstanding Balance 6,261,343 6,374,410 6,493,130 6,617,787 6,748,676 1 200,000 313,067 113,067 2 200,000 318,720 118,720 3 200,000 324,657 124,657 4 200,000 330,889 130,889 What would be the total interest cost of the bonds over their full term?

Roarie LLC issued 10,000, $1,000 bonds on January 1, 2020. The bonds have a 10-year term and pay interest semiannually. This is a partial bond amortization schedule for the bonds: Payment A. $4,261,329 B. $7,738,658 C. $4,000,000 D. $3,738,658 Cash Interest Effective Decrease in Interest Balance Outstanding Balance 6,261,343 6,374,410 6,493,130 6,617,787 6,748,676 1 200,000 313,067 113,067 2 200,000 318,720 118,720 3 200,000 324,657 124,657 4 200,000 330,889 130,889 What would be the total interest cost of the bonds over their full term?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...

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