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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
So I already tried and keep getting them wrong. I would really appreciate your help. On January 1, 2011, TCU Utilities issued $1,004,000 in bonds that mature in 6 years. The bonds have a stated interest rate of 5 percent and pay interest on June 30 and December 31 each year. When the bonds were sold, the market rate of interest was 15 percent. The company uses the effective-interest amortization method. (Use Table 5, Table 6) 1. What was the issue price on January 1, 2011? 2. What amount of interest expense should be recorded on June 30, 2011? and December 31, 2011? 3. What amount of cash interest should be paid on June 30, 2011? and December 31, 2011 4. What is the book value of the bonds on June 30, 2011? and December 31, 2011? Thank you very much...You have no idea how much it is appreciated
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