Stinson Corporation issued $600,000 of 5%, 15-year bonds payable on March 31, 2022. The market interest rate at the date of issuance was 9%, and the bonds pay interest semiannually. Stinson Corporation's year-end is March 31. Read the requirements www 1. Using the PV function in Excel, calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.) The issue price of the bonds is $ 404,533 2. Prepare an effective-interest amortization table for the bond through the first three interest payments. Round amounts to the nearest dollar. Discount Bond Semiannual Interest Date Interest Payment Interest Expense Discount Amortization Account Balance C A Mar 31, 2022 195,467 04,533
Stinson Corporation issued $600,000 of 5%, 15-year bonds payable on March 31, 2022. The market interest rate at the date of issuance was 9%, and the bonds pay interest semiannually. Stinson Corporation's year-end is March 31. Read the requirements www 1. Using the PV function in Excel, calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.) The issue price of the bonds is $ 404,533 2. Prepare an effective-interest amortization table for the bond through the first three interest payments. Round amounts to the nearest dollar. Discount Bond Semiannual Interest Date Interest Payment Interest Expense Discount Amortization Account Balance C A Mar 31, 2022 195,467 04,533
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Stinson Corporation issued $600,000 of 5%, 15-year bonds payable on March 31, 2022. The market interest rate at the date of issuance was 9%, and the bonds pay interest semiannually. Stinson
Corporation's year-end is March 31.
Read the requirements
1. Using the PV function in Excel, calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.)
The issue price of the bonds is $ 404,533
2. Prepare an effective-interest amortization table for the bond through the first three interest payments. Round amounts to the nearest dollar.
Discount
Bond
Semiannual
Interest Date
Interest
Payment
Interest
Expense
Discount
Amortization
Account
Balance
C
Mar 31, 2022
195,467
Sep 30, 2022
04,533
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