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Business, 02.09.2021 06:40 justhereforanswers13

DUNT Uata On January 1, 20X4, Charms Corporation sold 10% bonds having a maturity value of $700,000. The market
determined that 12% was the appropriate rate of interest, given the risks that Charms Corporation poses
to bondholders. The bonds are dated January 1, 20X4, mature January 1, 20x9, and pay interest on June 30
and December 31 of each year.
Charms Corporation does not elect to report its liabilities at fair market value. Ignore taxes for this
assignment.
Required:
1- Determine the amount that bondholders (investors) will pay Charms Corporation for these bonds when
the bonds are issued on January 1, 20X4.
2- Prepare an amortization schedule for the bond issue using the effective interest method.
3- Prepare the following 20X4 financial statements for Charms Corporation:
Statement of Cash Flows
Income Statement
“Balance Sheet
4- Prepare the following 20x6 financial statements for Charms Corporation:
Statement of Cash Flows

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DUNT Uata On January 1, 20X4, Charms Corporation sold 10% bonds having a maturity value of $700,00...
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