Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Finance & Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=411)
-   -   Bond computations: Straight-line amortization (https://www.askmehelpdesk.com/showthread.php?t=815032)

  • Aug 10, 2015, 01:42 PM
    cmcmahon
    Bond computations: Straight-line amortization
    Southlake Corporation issued $900,000 of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow. · Case A—The bonds are issued at 100. · Case B—The bonds are issued at 96. · Case C—The bonds are issued at 105. Southlake uses the straight-line method of amortization. Instructions:
    Complete the following table:
    Case A Case B Case C
    1. Cash inflow on the issuance date
    _______ _______ _______
    1. Total cash outflow through maturity
    _______ _______ _______
    1. Total borrowing cost over the life of the bond issue
    _______ _______ _______
    1. Interest expense for the year ended December 31, 20X1
    _______ _______ _______
    1. Amortization for the year ended December 31, 20X1
    _______ _______ _______
    1. Unamortized premium as of December 31, 20X1
    _______ _______ _______
    1. Unamortized discount as of December 31, 20X1
    _______ _______ _______
    1. Bond carrying value as of December 31, 20X1
    _______ _______ _______
  • Aug 11, 2015, 03:18 PM
    ma0641
    You spent enough time to copy this, you could have answered half of it. PS. We don't do your homework. What are your answers?

  • All times are GMT -7. The time now is 10:41 AM.