Team Ltd. is authorized to issue $2,000,000 of 3%, 10-year bonds payable. On December 31, 2021, when the market interest rate is 7%, the company issues $1,600,000 of the bonds. Team amortizes bond discount using the effective-interest method. The semiannual interest dates are June 30 and December 31. Read the requirements. Requirement 1. Use the PV function in Excel to calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.) The issue price of the bonds is $ 1,145,203 Requirement 2. Prepare a bond amortization table for the first year of the bonds. (Round your answers to the nearest whole dollar.) Team Ltd. Amortization Table Semiannual Interest Date Interest Payment Interest Expense Discount Amortization Discount Account Bond Carrying Balance Amount Dec 31, 2021
Team Ltd. is authorized to issue $2,000,000 of 3%, 10-year bonds payable. On December 31, 2021, when the market interest rate is 7%, the company issues $1,600,000 of the bonds. Team amortizes bond discount using the effective-interest method. The semiannual interest dates are June 30 and December 31. Read the requirements. Requirement 1. Use the PV function in Excel to calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.) The issue price of the bonds is $ 1,145,203 Requirement 2. Prepare a bond amortization table for the first year of the bonds. (Round your answers to the nearest whole dollar.) Team Ltd. Amortization Table Semiannual Interest Date Interest Payment Interest Expense Discount Amortization Discount Account Bond Carrying Balance Amount Dec 31, 2021
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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am. 138.
Transcribed Image Text:Team Ltd. is authorized to issue $2,000,000 of 3%, 10-year bonds payable. On December 31, 2021, when the market interest rate is 7%, the company issues $1,600,000
of the bonds. Team amortizes bond discount using the effective-interest method. The semiannual interest dates are June 30 and December 31.
Read the requirements.
Requirement 1. Use the PV function in Excel to calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.)
The issue price of the bonds is $ 1,145,203
Requirement 2. Prepare a bond amortization table for the first year of the bonds. (Round your answers to the nearest whole dollar.)
Team Ltd.
Amortization Table
Semiannual
Interest Date
Interest
Payment
Interest
Expense
Discount
Amortization
Discount Account
Bond Carrying
Balance
Amount
Dec 31, 2021
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