1. The issue price of the bonds is<u> $215,589.16</u>.
2. An amortization schedule through 20x9 is as follows:
<h3>Amortization Schedule:</h3>
Period PV PMT Interest Expense Amortization FV
1 $215,589.16 $6,000 $5,389.73 $610.27 $214,978.89
2 $214,978.89 $6,000 $5,374.47 $625.53 $214,353.36
Year 2
3 $214,353.36 $6,000 $5,358.83 $641.17 $213,712.20
4 $213,712.20 $6,000 $5,342.80 $657.20 $213,055.00
Year 3
5 $213,055.00 $6,000 $5,326.38 $673.62 $212,381.38
6 $212,381.38 $6,000 $5,309.53 $690.47 $211,690.91
Year 4
7 $211,690.91 $6,000 $5,292.27 $707.73 $210,983.18
8 $210,983.18 $6,000 $5,274.58 $725.42 $210,257.76
3. The journal entry recorded by Beedle on January 1, 20x6 is as follows:
Debit Cash $215,589.16
Credit Bonds Payable $200,000
Credit Bond Premium $15,589.16
- To record the issuance of $200,000 at 6% interest, semi-annually.
4. The amount in the accounts at the end of 20x6 are:
A. Bond payable $200,000
B. Premium $14,353.36 ($15,589.16 - $610.27 = $625.53)
C. Fair value adjustment on Bond payable = $1,235.80 ($610.27 = $625.53)
D. Interest expense = $10,764.20
5. The journal entry to record the bond retirement transaction on 12/31/20X8 is as follows:
Debit Bonds Payable $200,000
Debit Bonds Premium $12,000
Credit Cash $212,000
- To record the bond retirement.
<h3>Data and Calculations:</h3>
Maturity period = 10 years
Interest rate = 6% semi-annually
Interest payment dates = June 30 and December 31
Market rate = 5%
Face value = $200,000
Semi-annual coupon payment = $6,000 ($200,000 x 3%)
Fair value of the bonds at December 31:
12/31/20X6 $ 213,200
12/31/20X7 $ 213,300
12/31/20x8 $ 212,000
<h3>Issue Price Calculations:</h3>
N (# of periods) = 20 (10 years x 2)
I/Y (Interest per year) = 5%
PMT (Periodic Payment) = $6,000 ($200,000 x 6% x 1/2)
FV (Future Value) = $200,000
Results:
PV = $215,589.16
Sum of all periodic payments = $120,000 ($6,000 x 20)
Total Interest $104,410.84
Learn more about recording bond transactions at brainly.com/question/15877561
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