subject: accounting subject XYZ Company acquired 6,000,000 12% bonds on January 1, 2023. Interest is paid annually. According to the bond agreement, the bonds are to be paid off in three equal annual installments, starting on December 31, 2023. The effective interest rate for the bonds is 14%. The entity's business model involves collecting contractual cash flows. On August 1, 2024, the organization sold the bonds for 110 of their face value. 1. What is the present value of the bonds at the date of acquisition? 2. What is the carrying amount of the bonds before selling? Please make an amortization table.
subject: accounting subject XYZ Company acquired 6,000,000 12% bonds on January 1, 2023. Interest is paid annually. According to the bond agreement, the bonds are to be paid off in three equal annual installments, starting on December 31, 2023. The effective interest rate for the bonds is 14%. The entity's business model involves collecting contractual cash flows. On August 1, 2024, the organization sold the bonds for 110 of their face value. 1. What is the present value of the bonds at the date of acquisition? 2. What is the carrying amount of the bonds before selling? Please make an amortization table.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 6RE: Refer to the information in RE13-5. Assume that on June 30, Aggie received interest on the Smith...
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