Question

please help.

Required information The following information applies to the questions displayed below.) Christmas Anytime issues $850,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Calculate the issue price of a bond and complete the first three rows of an amortization schedule when: 2.The market interest rate is 7% and the bonds issue at a discount (EV of $1. PV of $1. EVA of S1, and PVA of (Use appropriate factor(s) from the tables provided. Do not round interest rate factors. Round your answers to nearest whole dollar.) noes issue price Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 01/01/2021 06/30/2021 12/31/2021

Answer 1

kindly check your discounting factor table

issue price of bond $ 789,601 Amount Present value Cash Flow Interest @ 6%/2 ($ 850000 x 3%) $ 25,500 25500 x 14.21240 362,416.20 850,000 850000 * 0.50257 $ 427,185 Principal Year1 Year2 Year3 Year4 Year5 Year6 Year7 Years Year9 Year10 pv @ 3.5%( 7%/2) 0.96618 0.93351 0.90194 0.87144 0.84197 0.81350 0.78599 0.75941 0.73373 0.70892 Issue price of bond ( 362416 +427185) FACE VALUE OF BOND Discount on issue price of bond ( 850000 -789601) $ $ 789,601 850,000 60,399 date cash paid Interest expense change in carrying value Carrying value 01-01-2021 6-30-21 12-31-21 $ $ 25,500 $ 25,500 $ 27,636 $ 27,711 $ 2,136 2,211 $ 789,601 791,737 793,948 please use appropriate discounting factor provide in your table Year11 Year12 Year13 Year14 Year15 Year16 Year17 Year18 Year19 Year20 Annuity 0.68495 0.66178 0.63940 0.61778 0.59689 0.57671 0.55720 0.53836 0.52016 0.50257 14.21240 Please comment if you have any doubt Please give thumps up if you satisfied with the answer