On December 31, 2024, when the market interest rate is 16%, Kennedy Realty issues $750,000 of 14.25%, 10-year Donds payable. The bonds pay interest semiannually. The present value of the bonds at issuance is $685,899 Requirements 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.) 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar) 12/31/2024 06/30/2025 12/31/2025 Cash Paid Interest Expense Amortized Carrying Amount

On December 31, 2024, when the market interest rate is 16%, Kennedy Realty issues $750,000 of 14.25%, 10-year Donds payable. The bonds pay interest semiannually. The present value of the bonds at issuance is $685,899 Requirements 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.) 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar) 12/31/2024 06/30/2025 12/31/2025 Cash Paid Interest Expense Amortized Carrying Amount

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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