(Answered) Question - on january 1 2008 lowry co issued ten-year bonds

Accounting

Question - On January 1, 2008, Lowry Co. issued ten-year bonds with a face value of $1,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%.

Prepare your responses on a separate Excel spreadsheet as directed on the Problem Set 3 directions.

a. Calculate the issue price of the bonds.

b. Without prejudice to your solution in part a, assume that the issue price was $884,000. Prepare the amortization table for 2008, assuming that amortization is recorded on interest payment dates.

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