straight line method ..
Dna issued $4000000 in 8% 10 yr bond on feb. 12010 at 115. Semiannual interest payment date are january 31 and july31. use staright line method and
ignoring year-end accruals..
1. With regard to the bond issue on Februay12010:
a) how much cash is received?
b) how much is bond payable ?
c) what is the deifference between a&b called and how much is it?
2. With regard to the bond interest payment on july 312010
a) How much cash is paid in interest?
b) How much is the amortization?
c) How much is the interest expense?
3. With regard to the bond interest payment on Januray 312011
a) how much cash is paid in interest?
b) how much is the amortization ?
c) how much is interest expense?
please i need a detail answer of each of the question.
I have forgot it how to do it and wish to learn it again.
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