# Learning Objective 2: Issue bonds payable (discount); record interest payments andthe related bond amortization using the effective-interest method) Energy Ltd. is authorizedto issue $3,000,000 of 1%, 10-year bonds payable. On December 31, 2018, when the marketinterest rate is 8%, the company issues$2,400,000 of the bonds. Energy amortizes bond discountusing the effective-interest method. The semiannual interest dates are June 30 and December 31.Requirements1. Use the PV function in Excel to calculate the issue price of the bonds.2. Prepare a bond amortization table for the term of the bonds using Excel.3. Record the issuance of the bonds payable on December 31, 2018; the first semiannualinterest payment on June 30, 2019; and the second payment on December 31, 2019.

Question

Learning Objective 2: Issue bonds payable (discount); record interest payments and
the related bond amortization using the effective-interest method) Energy Ltd. is authorized
to issue $3,000,000 of 1%, 10-year bonds payable. On December 31, 2018, when the market interest rate is 8%, the company issues$2,400,000 of the bonds. Energy amortizes bond discount
using the effective-interest method. The semiannual interest dates are June 30 and December 31.
Requirements
1. Use the PV function in Excel to calculate the issue price of the bonds.
2. Prepare a bond amortization table for the term of the bonds using Excel.
3. Record the issuance of the bonds payable on December 31, 2018; the first semiannual
interest payment on June 30, 2019; and the second payment on December 31, 2019.

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