On January 1, 2015 Rahman co. issued five-year bonds with a face value of $100000 and stated interest rate of 8%, payable semiannually on June 30 and December 31. Assume that the bonds were sold to yield 6%
1.Compute the amount of cash Rahaman Co. received on 1/1/2015
2.Prepare an amortization table for 2015 through 2019 for the bonds. Assume amortization is recorded on interest payment dates.
3.Give all journal entries Rahman Co. entered for the year 2016
4.Show how the bonds were shown on the Balance sheets of Rahaman Co. on 12/31/2015
5.What will be the maturity value of the bonds on 1/1/2020