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I\'m stumped Goal Ltd. is authorized to issue $2,000,000 of 3%. 10-year bonds pa

ID: 2447210 • Letter: I

Question

I'm stumped

Goal Ltd. is authorized to issue $2,000,000 of 3%. 10-year bonds payable. On December 31, 2014, when the market interest rate is 7%, the company issues $1,600,000 of the bonds Goal Ltd. amortizes bond discount by 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 first year of the bonds. 3. Record issuance of bonds payable on December 31, 2014: the first semiannual interest payment on June 30, 2015: and the second payment on December 31, 2015. Requirement 1. Use the PV function in Excel to calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.) The issue price of the bonds is $ . Requirement 2. Prepare a bond amortization table for the first year of the bonds. (Round your answers to the nearest whole dollar.)

Explanation / Answer

A market research consultant hired by Coke Classic Company is interested in              estimating the difference between the proportions of female and male customers who favor Coke Classic over Pepsi Cola in Chicago. A random sample of 200 consumers from the market under investigation showed the following frequency distribution.   

Male

Female

Coke

72

38

110

Pepsi

58

32

   90

                                130                   70           200

Male

Female

Coke

72

38

110

Pepsi

58

32

   90