Coney island entertainment issues 1000000 of 6 bonds due in

Question

Problem 9-1A Calculate the issue price of a bond and prepare amortization schedules [LO3, 4]

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Coney Island Entertainment issues $1,000,000 of 6% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.

Calculate the issue price of a bond and complete the first three rows of an amortization schedule when:

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Problem 9

Required:

1.

The market interest rate is 6% and the bonds issue at face amount. (Input all amounts as positive values. Do not round PV factors. Leave no cells blank - be certain to enter "0" wherever required. Round your intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Issue price

$

Date	Cash Paid	Interest Expense	Increase in Carrying Value	Carrying Value
1/1/12				$
6/30/12	$	$	$
12/31/12

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Problem 9-1A Part 2

2.	The market interest rate is 7% and the bonds issue at a discount. (Input all amounts as positive values.Do not round PV factors. Round your intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Issue price

$

Date	Cash Paid	Interest Expense	Increase in Carrying Value	Carrying Value
1/1/12				$
6/30/12	$	$	$
12/31/12

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Problem 9-

3.	The market interest rate is 5% and the bonds issue at a premium. (Input all amounts as positive values. Do not round PV factors. Round your intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Issue price

$

Date	Cash Paid	Interest Expense	Decrease in Carrying Value	Carrying Value
1/1/12				$
6/30/12	$	$	$
12/31/12

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