Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Show how the following amounts were computed for Year 2: (a) $50, (b) $67, (c) decimals. Enter all amounts as...

Extracted text: Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 Show how the following amounts were computed for Year 2: (a) $50, (b) $67, (c) decimals. Enter all amounts as positive values.) (a) (b) (c) $ 50 %3D $ 67 (rounded) $ 17 %3D (d) $ 981 II II


Extracted text: Santa Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond's coupon rate is 5 percent and interest is paid once a year on December 31. The bond matures in three years. The annual market rate of interest was 7 percent at the time the bond was sold. The following amortization schedule pertains to the bond issued: Cash Paid Interest Expense Amortization Balance January 1, Year 1 December 31, Year 1 December 31, Year 2 December 31, Year 3 $50 50 50 $66 67 69 $948 964 981 $16 17 19 1,000 Required: 1. What was the bond's issue price? 2. Did the bond sell at a discount or a premium? How much was the premium or discount? 3. What amount(s) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2? 4. Show how the following amounts were computed for Year 2: (a) $50, (b) $67, (c) $17, and (d) $981. Complete this question by entering your answers in the tabs below. Req 1 to 3 Req 4 1. What was the bond's issue price? 2. Did the bond sell at a discount or a premium? How much was the premium or discount? 3. What amount(s) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2? 1. Bond issue price 2. Bonds payable year 1 3. Bonds payable year 2