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ACC - Coney Island Entertainment

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Question;Coney Island Entertainment issues $1,000,000 of 6% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.Calculate the issue price of a bond and complete the first three rows of an amortization schedule when:1. The market interest rate is 6% and the bonds issue at face amount.- need date 6/30/12 cash paid, interest expense, increase in carrying value, carrying value- need date 6/31/12 cash paid, interest expense, increase in carrying value, carrying value2. The market interest rate is 7% and the bonds issue at a discount-need issue price- need date 6/30/12 cash paid, interest expense, increase in carrying value, carrying value- need date 6/31/12 cash paid, interest expense, increase in carrying value, carrying value3. The market interest rate is 5% and the bonds issue at a premium.-need issue price- need date 6/30/12 cash paid, interest expense, increase in carrying value, carrying value- need date 6/31/12 cash paid, interest expense, increase in carrying value, carrying value

 

Paper#39655 | Written in 18-Jul-2015

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