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    cacarp3733 Posts: 3, Reputation: 1
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    Dec 19, 2013, 11:57 AM
    Accounting 206 Week 2 assignment
    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
    a. Cash inflow on the issuance date _______ _______ _______
    b. Total cash outflow through maturity _______ _______ _______
    c. Total borrowing cost over the life of the bond issue _______ _______ _______
    d. Interest expense for the year ended December 31, 20X1 _______ _______ _______
    e. Amortization for the year ended December 31, 20X1 _______ _______ _______
    f. Unamortized premium as of December 31, 20X1 _______ _______ _______
    g. Unamortized discount as of December 31, 20X1 _______ _______ _______
    h. Bond carrying value as of December 31, 20X1 _______ _______ _______
    cacarp3733's Avatar
    cacarp3733 Posts: 3, Reputation: 1
    New Member
     
    #2

    Dec 19, 2013, 11:58 AM
    I just want someone to walk me through how to do this. Not do all of the work for me.

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