On June 30, 2021, the market interest rate is 5%. Champs Corporation issues $600,000 of 10%, 30-year bonds payable. The bonds pay interest on June 30 and December 31. The company amortizesbond premium using the effective-interest method.Read the requirements.Requirement 1. Use the PV function in Excel to calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.)The issue price of the bonds isRequirements1.2.3.Use the PV function in Excel to calculate the issue price of the bonds.Prepare a bond amortization table for the first four semiannual interestperiods.Record the issuance of bonds payable on June 30, 2021; the payment ofinterest on December 31, 2021; and the payment of interest on June 30,2022.PrintDoneX

Par value = $600,000Coupon rate = 10%Period = 30 yearsMarket rate of interest = 5%

Answered: On June 30, 2021, the market interest…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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