On January 1, 2024, a company issues $800,000 of 8% bonds, due in ten years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $856,850. Required: 1. Fill in the blanks for the first three rows of the amortization schedule below: 2. Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the blanks for the first three rows of the amortization schedule below: (Round your answers to the nearest dollar amount.) Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 01/01/2024 06/30/2024 12/31/2024 $ 32,000 32,000
On January 1, 2024, a company issues $800,000 of 8% bonds, due in ten years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $856,850. Required: 1. Fill in the blanks for the first three rows of the amortization schedule below: 2. Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the blanks for the first three rows of the amortization schedule below: (Round your answers to the nearest dollar amount.) Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 01/01/2024 06/30/2024 12/31/2024 $ 32,000 32,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 7C
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