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The University Club recently issued $1,500,000 of 10-year, 9% bonds at an effective interest rate of 10%. Bond interest is payable annually.
You have been asked to calculate the issuance price of the bonds and prepare amortization schedules for any discount or premium. The worksheet BONDS has been provided to assist you. Note that the worksheet contains a scratch pad at the bottom that has been preprogrammed to automatically compute and display the relevant
Calculate the issue price of bonds and prepare amortization schedules for any discount or premium.
Explanation of Solution
Calculate the issue price of bonds and prepare amortization schedules for any discount and premium.
Table (1)
The formulae for the above calculation are as follows:
Figure (2)
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Chapter 11 Solutions
Excel Applications for Accounting Principles
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Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning