A Company Issued 10%,10-Year Bonds with a Par Value of $1,000,000

question 98

Essay

A company issued 10%,10-year bonds with a par value of $1,000,000 on January 1,2013,at a selling price of $885,295,to yield the buyers a 12% return.The company uses the effective interest amortization method.Interest is paid semiannually each June 30 and December 31.
(1)Prepare an amortization table for the first two payment periods using the format shown below:
$\begin{array}{|c|c|c|c|c|c|}\hline\text { Semiannual }\\\text { Interest } & \text { Cash Interest } & \text { Bond Interest } & \text { Discount } & \text { Unamortized } & \text { Carrying } \\\text { Period } & \text { Paid } & \text { Expense } & \text { Amortization } & \text { Discount } & \text { Value }\\\hline\end{array}$
(2)Prepare the journal entry to record the first semiannual interest payment.

Understand the motivations and effects of globalization on international business.

Identify the reasons for companies going international and the concept of global management.

Understand the basic functionality and terminology of counters in programmable logic controllers (PLCs).

Identify different types of counters (e.g., CTU, CTD) and their operational characteristics.

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Definitions:

Break-Even Revenue

The amount of income needed to cover all operating expenses, with no profit or loss.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent or salaries.

Variable Cost

Costs that change in proportion to the good or service that a business produces.

Profit

The financial gain obtained when the revenue from selling goods or services exceeds the total cost of producing them.