The notes to the Thankful Ltd. financial statements reported the following data on December 31, Year 1 (end of the fiscal year): (Click the icon to view the financial statement data.) Thankful Ltd. amortizes bond discount by the effective-interest method and pays all interest amounts at December 31. Read the requirements Requirement 1. Assume the market interest rate on January 1 of year 1, the date of issuance of the bonds, is 5%. Answer the following questions about Thankful Ltd.'s long-term liabilities: (Round your answers to the nearest whole dollar.) a. Using the PV function in Excel, what is the issue price of the bonds? The issue price of the bonds is $ b. What is the maturity value of the 2% bonds? The maturity value of the 2% bonds is $ c. What is Thankful Ltd.'s annual cash interest payment on the 2% bonds? The annual cash interest payment is $ d. What is the carrying amount of the 2% bonds at December 31, year 1? The carrying amount of the 2% bonds at December 31, Year 1 is $ Choose from any list or enter any number in the input fields, then continue to the next question. The notes to the Thankful Ltd. financial statements reported the following data on December 31, Year 1 (end of the fiscal year): (Click the icon to view the financial statement data.) Thankful Ltd. amortizes bond discount by the effective-interest method and pays all interest amounts at December 31. Read the requirements. The carrying amount of the 2% bonds at December 31, Year 1 is $ Requirement 2. Prepare an amortization table through December 31, Year 4 for the 2% bonds. (Round all amounts to the nearest dollar.) How much is Thankful Ltd.'s interest expense on the 2% bonds for the year ended December 31, Year 4? Begin by preparing the amortization table through December 31, Year 4 for the 2% bonds. (Round your answer to the nearest whole dollar) Thankful Ltd. Amortization Table A B C Annual Interest Interest Interest Date Payment Expense D Discount Amortization E F Discount Account Bond Carrying Balance Amount Jan 1, Yr 1 Dec 31, Yr 1 Dec 31, Yr 2 Dec 31 Yr 3 Choose from any list or enter any number in the input fields, then continue to the next question D The notes to the Thankful Ltd. financial statements reported the following data on December 31, Year 1 (end of the fiscal year): (Click the icon to view the financial statement data.) Thankful Ltd. amortizes bond discount by the effective-interest method and pays all interest amounts at December 31. Read the requirements. Dec 31, Yr 2 Dec 31, Yr 3 Dec 31, Yr 4 How much is Thankful Ltd.'s interest expense on the 2% bonds for the year ended December 31, Year 4? ☐ Requirement 3. Show how Thankful Ltd. would report the 2% bonds payable and the 4% notes payable at December 31, Year 4. Liabilities Less Choose from any list or enter any number in the input fields, then continue to the next question. Note 6. Indebtedness Bonds payable, 2% due on December 31, Year 8.... $3,000,000 Less: Discount... Notes payable, 4%, payable in amounts of $50,000 annual installments starting in Year 5........ ? ? 300,000 06 Requirements 1. Assume the market interest rate on January 1 of year 1, the date of issuance of the bonds, is 5%. Answer the following questions about Thankful Ltd.'s long-term liabilities: a. Using the PV function in Excel, what is the issue price of the bonds? b. What is the maturity value of the 2% bonds? C. What is Thankful Ltd's annual cash interest payment on the 2% bonds? d. What is the carrying amount of the 2% bonds at December 31, year 1? 2. Prepare an amortization table through December 31, Year 4 for the 2% bonds (Round all amounts to the nearest dollar) How much is Thankful Ltd.'s interest expense on the 2% bonds for the year Laded December 31 Year 4? 3. Show how Thankful Ltd would report the 2% bonds payable and the 4% notes payable at December 31 Year 4 Print Done