Prairie dunes co issues bonds dated january 1 2011 with a

Assignment Help Accounting Basics

Reference no: EM13485442

Prairie Dunes Co. issues bonds dated January 1, 2011, with a par value of $860,000. The bonds' annual contract rate is 10%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 8%, and the bonds are sold for $905,068.

Prepare an amortization table for these bonds using the effective interest method to amortize the premium.(Make sure that the unamortized premium equals to '0' and the Carrying value equals the face value of the bond in the last period. Leave no cells blank - be certain to enter "0" wherever required. Bond interest expense in the last period should be calculated as Cash interest paid (?) Premium amortized. Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Semiannual
Interest
Period-End

(A)
Cash Interest
Paid

(B)
Bond Interest
Expense

(D)
Unamortized
Premium

(E)
Carrying
Value

1/01/2011

6/30/2011

12/31/2011

6/30/2012

12/31/2012

6/30/2013

12/31/2013

Total

Reference no: EM13485442

Questions Cloud

On september 20 20x1 ott purchased bonds issued by : on september 20 20x1 ott purchased bonds issued by buy-a-lot company with an amortized cost of 100 and a fair value of

In the law of comparative advantage the country which : in the law of comparative advantage the country which should produce a specific product is determined by1. opportunity

Harold daley budgeted 210 for food for the month of july he : 1. the hamilton household has 145000 in assets and 63000 in liabilities. what is the familys net worth?2. harold daley

Compute the economic order quantity for sucrose compute the : ulmer company uses 312500 pounds of sucrose each year. the cost of placing an order is 30 and the carrying cost for one

Prairie dunes co issues bonds dated january 1 2011 with a : prairie dunes co. issues bonds dated january 1 2011 with a par value of 860000. the bonds annual contract rate is 10

Japans real gdp was 548 trillion yen in 2011 and 560 : japans real gdp was 548 trillion yen in 2011 and 560 trillion yen in 2012. japans population was 127.2 million in 2011

A company is considering investing in an exercise machine : a company is considering investing in an exercise machine that costs 5000 and would increase revenues by 1500 a year

Its local bank is willing to lend it the money to buy the : general hospital wants to purchase a new mri today. its local bank is willing to lend it the money to buy the mri at a

The loan payments will start at the end of the month and : love canal general hospital wants to purchase a new blood analyzing device today. its local bank is willing to lend it

User Account

All Pages