Effective Annual Interest Essay Assignment

Effective Annual Interest Essay Assignment

Instructions/Description

Effective Annual Interest Essay Assignment

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BU Curriculum Corporation issued $800,000 of 9% bonds on September 1, 2021, due on September 1, 2026. The interest is to be paid twice a year on March 1 and September 1. The bonds were sold to yield 12% effective annual interest. BU Curriculum Corporation closes its books annually on December 31.

(a) Complete an amortization schedule for the above bond (for all periods) in a similar format as below using Excel. There should only be formulas in your table – NO hardcoded numbers. You can round to the nearest dollar or penny. Use the effective-interest method.

(b) Prepare the journal entries for the following:[Order Now]

1. September 1, 2021 bond issue (the originating entry)
2. Adjusting entry for December 31, 2021 (adjusting entry should cover 4 months)
3. March 1, 2022 entry
4. September 1, 2022 entry
5. Adjusting entry from December 31, 2022
6. March 1, 2023 entry

(c) Compute the interest expense to be reported on the income statement for the year ended December 31, 2021 and December 31, 2022.

(d) This workbook is for your director who may want to print your tables. Therefore, part of your design is to make sure your tables are on one page. You can have multiple pages that print, but your amortization table should not be split onto multiple tables. You can use multiple sheets or place all the requirements on one sheet.

(e) Complete a second amortization schedule for the above bond (for all periods) using the straight-line amortization method (entries are not required)[Order Now].

Effective Annual Interest Essay Assignment

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