CAN ANYONE HELP?? 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 900,000 864,000 945,000 b. Total cash outflow through maturity 1,620,000 1,620,000 1,620,000 c. Total borrowing cost over the life of the bond issue 720,000 756,000 675,000 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 _______ _______ _______
Posted on: Mon, 29 Sep 2014 17:07:07 +0000
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