Excel Applications for Accounting Principles 4th Edition by Gaylord Smith

Exercise 7

PROBLEM DATA
The University Club recently issued $1,500,000 of 10-year, 9% bonds at an effective interest rate of 10%. Bond interest is payable annually.
REQUIREMENT
Open the file BONDS from the website for this book at cengagebrain.com. Assume all bonds have at least a two-year maturity. Year 0 is the date of issuance. Bond discount (column E) should be a negative number, and bond premium should be a positive number. The amortization of bond discount (column C in the straight-line table and column D in the effective interest table) should be a positive number, and the amortization of bond premium should be a negative number.
Enter the formulas in the appropriate cells. Enter your name in cell A1. Save the file as BONDS3. Print the worksheet when done. Also print your formulas. Check figures: Bond issue price (cell F17), $1,407,831; Bond carrying value for Year 10 (cells F32 and F49), $1,500,000.