Complete the q sheet for bonds

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On January 1, 2019, Lowre Communications issued $100,000 of 6%, 20-year bonds at $89,322 when the FMV was 7%. Interest is payable semiannually each June 30th and December 31st.

Required:

Question 1: Complete the Q Sheet for Bonds assuming the following.

a) The bonds were issued at face value.

b) The bonds were issued when the market rate of interest was 7% and sold for $89,322

Q SHEET:

  • Face Value Discount
  • Total Interest Expense:
  • Interest Expense 2019:
  • Interest Expense 2020:
  • Total Cash Inflows:
  • Total Cash Outflows:
  • Cash Outflows Year 2019:
  • Cash Outflows Year 2020:

Reference no: EM132475270

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