Shuttle Company issued $1,000,000, three-year, 10 percent bonds on January 1, year 1. The bond interest is paid each December 31,the end of the company's fiscal year. The bond was sold to yield 9 percent. Use Table 9C.1, Table 9C.2. (Round time value factor to 4decimal places.)Required:1. Complete a bond payment schedule. Use the effective-interest amortization method. (Make sure that the unamortizeddiscount/premium equals to '0' and the Net Liability equals to face value of the bond in the last period. Interest expense in the lastperiod should be calculated as Cash Interest (+) discount / (−) premium amortized. Round intermediate and final answers to thenearest whole dollar.)Date1/1/year 112/31/year 112/31/year 212/31/year 3Interest expenseBonds payableInterest paymentIssuance of bondsPayment of bondsBond Payment ScheduleInterestExpenseCash Payment$100,000100,000100,000Amortizationof Premium2. What amounts will be reported on the financial statements (statement of financial position, statement of earnings, and statement ofcash flows) for year 1, year 2, and year 3? (Round intermediate and final answers to the nearest whole dollar.)Year 1CarryingAmountYear 2Year 3 TABLE 9C.2Present Value of Annuity of $1, p = [1-1/(1+]/i3.25%3.5%12345676.59826.534687.48597.40517.40517.3255 7.247298.3605 8.2605 8.1622 8.06579.2222 9.1012 8.9826 8.8662101112131415Periods 1.5% 1.75% 2% 2.25% 2.5% 2.75% 3%0.9852 0.9828 0.9804 0.9780 0.9756 0.9732 0.9709 0.9685 0.96621.9559 1.9487 1.9416 1.9345 1.9274 1.9204 1.9135 1.9066 1.89972.9122 2.8980 2.8839 2.8699 2.8560 2.8423 2.8286 2.8151 2.80163.8544 3.8309 3.8077 3.7847 3.7620 3.7394 3.7171 3.6950 3.67314.7826 4.7479 4.7135 4.6795 4.6458 4.6126 4.5797 4.5472 4.51515.6972 5.6490 5.6014 5.5545 5.5081 5.4624 5.4172 5.3726 5.32866.4720 6.4102 6.3494 6.2894 6.2303 6.1720 6.11457.1701 7.0943 7.0197 6.9462 6.87407.9709 7.8777 7.7861 7.6961 7.60778.7521 8.6401 8.5302 8.4224 8.316610.0711 9.9275 9.7868 9.6491 9.5142 9.3821 9.2526 9.1258 9.001610.9075 10.7395 10.5753 10.4148 10.2578 10.1042 9.9540 9.8071 9.663311.7315 11.5376 11.3484 11.1636 10.9832 10.8070 10.6350 10.4669 10.302712.5434 12.3220 12.1062 11.8959 11.6909 11.4910 11.2961 11.1060 10.920513.3432 13.0929 12.8493 12.6122 12.3814 12.1567 11.9379 11.7249 11.517414.1313 13.8505 13.5777 13.3126 13.0550 12.8046 12.5611 12.3244 12.094114.9076 14.5951 14.2919 13.9977 13.7122 13.4351 13.1661 12.9049 12.651315.6726 15.3269 14.9920 14.6677 14.3534 14.0488 13.7535 13.4673 13.189716.4262 16.0461 15.6785 15.3229 14.9789 14.6460 14.3238 14.0119 13.709817.1686 16.7529 16.3514 15.9637 15.5892 15.2273 14.8775 14.5393 14.212424.0158 23.1858 22.3965 21.6453 20.9303 20.2493 19.6004 18.9819 18.392029.9158 28.5942 27.3555 26.1935 25.1028 24.0781 23.1148 22.2084 21.355134.9997 33.1412 31.4236 29.8344 28.3623 26.9972 25.7298 24.5518 23.45563.75% 4% 4.5% 5%0.9639 0.9615 0.9569 0.95241.8929 1.8861 1.8727 1.85942.7883 2.7751 2.7490 2.72323.6514 3.6299 3.5875 3.5460 3.4651 3.38724.4833 4.4518 4.3900 4.3295 4.21245.2851 5.2421 5.15795.89276.5959 6.46321617181920304050Periods6% 7% 8% 9% 10%0.9434 0.9346 0.9259 0.9174 0.9091121.8334 1.8080 1.7833 1.7591 1.73552.6730 2.6243 2.5771 2.5313 2.4869343.3121 3.2397 3.169954.1002 3.9927 3.8897 3.790865.0757 4.9173 4.76654.6229 4.4859 4.355376.0579 6.00215.78645.2064 5.0330 4.86845.5824 5.38936.2098 5.9713 5.7466 5.5348 5.334986.8028 6.732797.5208 7.43537.26887.10786.8017 6.51526.2469 5.9952 5.7590108.2128 8.11097.91277.72177.0236 6.7101 6.4177 6.1446117.1390 6.8052 6.49517.36018.8798 8.7605 8.5289 8.3064 7.8869 7.49879.5227 9.3851 9.1186 8.863310.1424 9.9856 9.6829 9.3936127.5361 7.1607 6.813713141516178.3838 7.94278.8527 8.3577 7.9038 7.4869 7.103410.7396 10.5631 10.2228 9.8986 9.2950 8.7455 8.2442 7.7862 7.366711.3153 11.1184 10.7395 10.3797 9.7122 9.1079 8.5595 8.0607 7.606111.8702 11.6523 11.2340 10.8378 10.1059 9.4466 8.8514 8.3126 7.823712.4050 12.1657 11.7072 11.2741 10.4773 9.7632 9.1216 8.5436 8.021612.9205 12.6593 12.1600 11.6896 10.8276 10.0591 9.3719 8.7556 8.201413.4173 13.1339 12.5933 12.0853 11.1581 10.3356 9.6036 8.9501 8.364913.8962 13.5903 13.0079 12.4622 11.4699 10.5940 9.8181 9.1285 8.513617.8292 17.2920 16.2889 15.3725 13.7648 12.4090 11.2578 10.2737 9.426920.5510 19.7928 18.4016 17.1591 15.0463 13.3317 11.9246 10.7574 9.779122.4345 21.4822 19.7620 18.2559 15.7619 13.8007 12.2335 10.9617 9.9148181920304050*There is one payment each period.

A bond refers to a loan taken by a borrower from the lender. These are issued by the federal…

Shuttle Company issued $1,000,000, three-year, 10 percent bonds on January 1, year 1. The bond interest is paid each December 31 the end of the company's fiscal year. The bond was sold to yield 9 percent. Use Table 9C.1, Table 9C.2. (Round time value factor to decimal places.) Required: 1. Complete a bond payment schedule. Use the effective-interest amortization method. (Make sure that the unamortized discount/premium equals to '0' and the Net Liability equals to face value of the bond in the last period. Interest expense in the period should be calculated as Cash Interest (+) discount / (-) premium amortized. Round intermediate and final answers to the nearest whole dollar.) Date 1/1/year 1 12/31/year 1 12/31/year 2 12/31/year 3 Interest expense Bonds payable Interest payment Issuance of bonds Payment of bonds Bond Payment Schedule Interest Expense Cash Payment $ 100,000 100,000 100,000 Amortization of Premium 2. What amounts will be reported on the financial statements (statement of financial position, statement of earnings, and statement cash flows) for year 1, year 2, and year 3? (Round intermediate and final answers to the nearest whole dollar.) Year 1 Carrying Amount Year 2 Year 3

Shuttle Company issued $1,000,000, three-year, 10 percent bonds on January 1, year 1. The bond interest is paid each December 31 the end of the company's fiscal year. The bond was sold to yield 9 percent. Use Table 9C.1, Table 9C.2. (Round time value factor to decimal places.) Required: 1. Complete a bond payment schedule. Use the effective-interest amortization method. (Make sure that the unamortized discount/premium equals to '0' and the Net Liability equals to face value of the bond in the last period. Interest expense in the period should be calculated as Cash Interest (+) discount / (-) premium amortized. Round intermediate and final answers to the nearest whole dollar.) Date 1/1/year 1 12/31/year 1 12/31/year 2 12/31/year 3 Interest expense Bonds payable Interest payment Issuance of bonds Payment of bonds Bond Payment Schedule Interest Expense Cash Payment $ 100,000 100,000 100,000 Amortization of Premium 2. What amounts will be reported on the financial statements (statement of financial position, statement of earnings, and statement cash flows) for year 1, year 2, and year 3? (Round intermediate and final answers to the nearest whole dollar.) Year 1 Carrying Amount Year 2 Year 3

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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