On 12/31/16, flowmo inc. issued 10-year, 8% bonds with a face value of $10,000,000 for a...
On 12/31/16, flowmo inc. issued 10-year, 8% bonds with a face value of $10,000,000 for a price to yield a market rate of 6.5%. what is the amount of interest expense reported on flowmo’s income statement for 2018?
Homework Answers
| Year end | Beginning Balance | Interest expenses | Coupoun payment | Principal Repaid | Ending Balance |
| a | b | c=b*6.5% | d | e=d-c | f=b-e |
| 2016 | 0 | 0 | 0 | 0 | $ 1,10,78,325 |
| 2017 | $ 1,10,78,324.53 | $ 7,20,091.09 | $ 8,00,000.00 | $ 79,908.91 | $ 1,09,98,415.63 |
| 2018 | $ 1,09,98,415.63 | $ 7,14,897.02 | $ 8,00,000.00 | $ 85,102.98 | $ 1,09,13,312.64 |
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