Unformatted text preview: 3) What is the present value of $16,990 due 8 periods from now, discounted at 11%? 4) What is the present value of $33,480 to be received at the end of each of 8 periods, discounted at 8%? Semiannual Interest Periods Interest to be Paid Interest expense to be recorded Discount Amortization Unamortized Discount Bond Carrying Value Issue Date $84,930 $1,278,070 1 $61,335 $63,904 $2,569 82,361 1,280,639 2 61,335 64,032 2,697 79,664 1,283,336 Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1. 5) Presented below is the partial bond discount amortization schedule for Morales Corp. Morales uses the effective-interest method of amortization. Cash...
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- Spring '11
- Depreciation, Generally Accepted Accounting Principles, bond discount amortization, Morales Corp