Super Splash issues $900,000, 8% bonds on January 1, 2024, that mature in 20 years. The market interest rate for bonds of similar risk and maturity is 7%, and the bonds issue for $996,098. Interest is paid semiannually on June 30 and December 31. Required: 1. Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) Answer is complete but not entirely correct. Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 1/1/2024 S 996,098 6/30/2024 36,000 34,863 1,137 994,961 12/31/2024 36,000 34,890 1,110 × 993,851

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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[The following information applies to the questions displayed below.]
Super Splash issues $900,000, 8% bonds on January 1, 2024, that mature in 20 years. The market interest rate for bonds
of similar risk and maturity is 7%, and the bonds issue for $996,098. Interest is paid semiannually on June 30 and
December 31.
Required:
1. Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to
the nearest whole dollar.)
Answer is complete but not entirely correct.
Cash
Date
Paid
Interest
Expense
Change in
Carrying
Value
Carrying Value
1/1/2024
$
996,098
6/30/2024
36,000
34,863
1,137
994,961
12/31/2024
36,000
34,890
1,110 x
993,851
Transcribed Image Text:! Required information [The following information applies to the questions displayed below.] Super Splash issues $900,000, 8% bonds on January 1, 2024, that mature in 20 years. The market interest rate for bonds of similar risk and maturity is 7%, and the bonds issue for $996,098. Interest is paid semiannually on June 30 and December 31. Required: 1. Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) Answer is complete but not entirely correct. Cash Date Paid Interest Expense Change in Carrying Value Carrying Value 1/1/2024 $ 996,098 6/30/2024 36,000 34,863 1,137 994,961 12/31/2024 36,000 34,890 1,110 x 993,851
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