Winter sale 50% off - get more info support@solvehomework.com

(Solved) : Create Bond Amortization Table Using Example Given Following Question February 1 2018 Wolf Q38012266 . . .

$9.00

Create a bond amortization table using the example given for thefollowing question.

On February 1, 2018, Wolf Inc. issued 10% bonds dated February1, 2018, with a face amount of $200,000. The bonds sold for$239,588 and mature in 20 years. The effective interest rate forthese bonds was 8%. Interest is paid semiannually on July 31 andJanuary 31. Wolf’s fiscal year is the calendar year. Wolf uses theeffective interest method of amortization.

Ex.

Bond Life Periods Face % MV% MV%per period Face Interest PV Bond 100000 4 8 0.09 0.1 0.05 4500 $96,768 Cash Interest Effect I

Expert Answer


Attached

Description

Create a bond amortization table using the example given for thefollowing question.

On February 1, 2018, Wolf Inc. issued 10% bonds dated February1, 2018, with a face amount of $200,000. The bonds sold for$239,588 and mature in 20 years. The effective interest rate forthese bonds was 8%. Interest is paid semiannually on July 31 andJanuary 31. Wolf’s fiscal year is the calendar year. Wolf uses theeffective interest method of amortization.

Ex.

Bond Life Periods Face % MV% MV%per period Face Interest PV Bond 100000 4 8 0.09 0.1 0.05 4500 $96,768 Cash Interest Effect I