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Christmas Anytime issues $730,000 of 6% bonds, due in 15 years, with interest payable semiannually on...

Christmas Anytime issues $730,000 of 6% bonds, due in 15 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:

Required:

1.

a) The market interest rate is 6% and the bonds issue at face amount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors.)

what is the Issue price_________

Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value
01/01/18
06/30/18
12/31/18

b) The market interest rate is 7% and the bonds issue at a discount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors.)

What is the issue price________?

Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value
01/01/18
06/30/18
12/31/18

c) The market interest rate is 5% and the bonds issue at a premium. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not round interest rate factors.)

What is the issue price_______?

Date Cash Paid Interest Expense Decrease in Carrying Value Carrying Value
01/01/18
06/30/18
12/31/18
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