# What is the remaining balance after the first 4 years?iv.(Ch. 12) Sandi & Co. sold/issued \$200,000 of 5-year bonds on January 1, 2017 promising to pay an 8% annualinterest rate with payments every 6 months (semiannually) until the date of maturity. At the time of the salethe prevailing interest rate in the open market was 10%. Sandi & Co. amortizes discounts/premiums onbonds payable using the effective interest method.a. Calculate the amount of cash that was received by Sandi & Co. on January 1, 2017.b. Prepare an amortization schedule showing the life-cycle of the bond (all 5 years). The scheduleshould show all of the following: # of periods, Beginning balance (carrying value right before eachpayment is made), interest rate, TIME, calculated interest expense for that period, total cashpayment for each payment, amortization of premium/d iscount with each payment, balance ofbond payable account after each payment, balance of premium/discount on bonds payable aftereach payment, and the carrying value after each payment. The schedule should also show the totalcash paid out for all 10 payments, including the principal paid back at maturity.c. Clearly answer the following questions in written format:i. What is the total interest expense that Sandi & Co. will recognize over the life of the bond?ii. What is the beginning discount/premium on the date the bond is issued?iii. What is the ending discount/premium after the last semi-annual payment is made, butbefore the face value is paid?iv. What is the total amount of cash paid in semiannual payments over the life of the bond?v. What is the amount of cash paid to bondholders on the maturity date, not including anysemi-annual payments?

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Asked Nov 24, 2019
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I need help with all of question 2.

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1. The amount realised on sale of bond is the present value of the expected cash flows from the bond.Present value of the bond is the present value of the interest payments and the present value of the amount payable on redemption of bond.

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