Homework Answers
| Date |
Interest Payment |
Interest Expense |
Discount Amortisation |
Unamortised Discount |
Carrying Value |
|
| 01-07-17 | $ 352,000.00 | $ 7,648,000.00 | ||||
| 30-06-18 | $ 720,000 | $ 764,800.00 | $ 44,800.00 | $ 307,200.00 | $ 7,692,800.00 | |
| 30-06-19 | $ 720,000 | $ 769,280.00 | $ 49,280.00 | $ 257,920.00 | $ 7,643,520.00 | |
| Ans) ( C ) | $ 257,920.00 |
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Help please with the process to do this exercise.
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Need answers Mellilo Corporation issued $5 million of 20-year, 9.5 percent bonds on July 1,2011, at...
Need answers
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On July 1, 2016, Swifty Corporation issued 8% bonds in the face
amount of $13900000, which mature on July 1, 2022. The bonds were
issued for $13280000 to yield 9%, resulting in a bond discount of
$620000. Swifty uses the effective-interest method of amortizing
bond discount. Interest is payable annually on June 30. At June 30,
2018, Swifty's unamortized bond discount should be
$446112.
$475712.
$463712.
$433712.
On January 1, Bramble Corp. issued $6200000, 9% bonds for
$5895000. The market rate of interest for these bonds is 10%.
Interest is payable annually on December 31. Bramble uses the
effective-interest method of amortizing bond discount. At the end
of the first year, Bramble should report unamortized bond discount
of
$246050.
$273500.
$243000.
$262500.
Need answers
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