Calla Canoe Company is considering raising additional capital for further expans

Question

Calla Canoe Company is considering raising additional capital for further expansion The company wants to finance a new business venture into guided trips down the Amazon River in South America. Additionally, the company wants to add another building on their land to offer more services for local customers. i (Click the icon to viewing the financing information.) Requirements Will the bonds issue at face value, a premium, or a discount? Record the following transactions. Include dates and round to the nearest dollar. Omit explanations. a. Cash received from the bond issue. b. Cash received from the mortgage payable. c. Semiannual bond interest payments for 2020. Amortize the 1. 2. premium or discount using the straight-line amortization method. d. Payment on the mortgage payable for 2020. Calculate the total interest expense incurred in 2020. 3. Print Done Choose from any list or enter any number in the input fields and then click ? Check Answer parts remaining Check Answer Clear All

Explanation / Answer

1)bond is issued at discoutn since amount received less than face value
2)
a)cash received from bosn is 298000
b)cash received from mortgae is 375000
c)interest payments =(coupon/2)*face value=(6%/2)*300000=9000 same amount for june and december
d)for 2020=15000+(375000*7%)=41250
3)total interst expense for 2020 :
bond it is (3.08%*298000)+(3.08%*(298000+200))=18353.82
for mortge:=7%%*375000=26250
total=44603.82

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