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A company issued 8%, 5-year bonds with a par value of $2,070,000, on January 1. Interest is to be paid semiannually each June 30 and December 31. The bonds were sold at $2,225,290 based on an annual market rate of 6%. The company uses the effective intere method of amortization. 1. Prepare an amortization table for the first two semiannual payment periods using the format shown below. 2. Prepare the journal entry to record the first semiannual interest payment. Enter answers in each of the following tabs. Required 1 Required 2 Prepare an amortization table for the first two semiannual payment periods using the following format. Note: Round your answers to 2 decimal places. Semiannual Period-End 06/30 12/31 Cash Interest Paid Bond Interest Expense Premium Amortization < Required 1 Unamortized Premium Required 2 > Carrying Value

A company issued 8%, 5-year bonds with a par value of $2,070,000, on January 1. Interest is to be paid semiannually each June 30 and December 31. The bonds were sold at $2,225,290 based on an annual market rate of 6%. The company uses the effective intere method of amortization. 1. Prepare an amortization table for the first two semiannual payment periods using the format shown below. 2. Prepare the journal entry to record the first semiannual interest payment. Enter answers in each of the following tabs. Required 1 Required 2 Prepare an amortization table for the first two semiannual payment periods using the following format. Note: Round your answers to 2 decimal places. Semiannual Period-End 06/30 12/31 Cash Interest Paid Bond Interest Expense Premium Amortization < Required 1 Unamortized Premium Required 2 > Carrying Value

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A company issued 8%, 5-year bonds with a par value of $2,070,000, on January 1. Interest is to be paid semiannually each June 30 and December 31. The bonds were sold at $2,225,290 based on an annual market rate of 6%. The company uses the effective interest method of amortization. 1. Prepare an amortization table for the first two semiannual payment periods using the format shown below. 2. Prepare the journal entry to record the first semiannual interest payment. Enter answers in each of the following tabs. Required 1 Required 2 Prepare an amortization table for the first two semiannual payment periods using the following format. Note: Round your answers to 2 decimal places. Semiannual Period-End 06/30 12/31 Cash Interest Paid Bond Interest Expense Premium Amortization < Required 1 Unamortized Premium Required 2 > Carrying Value
Transcribed Image Text:A company issued 8%, 5-year bonds with a par value of $2,070,000, on January 1. Interest is to be paid semiannually each June 30 and December 31. The bonds were sold at $2,225,290 based on an annual market rate of 6%. The company uses the effective interest method of amortization. 1. Prepare an amortization table for the first two semiannual payment periods using the format shown below. 2. Prepare the journal entry to record the first semiannual interest payment. Enter answers in each of the following tabs. Required 1 Required 2 Prepare an amortization table for the first two semiannual payment periods using the following format. Note: Round your answers to 2 decimal places. Semiannual Period-End 06/30 12/31 Cash Interest Paid Bond Interest Expense Premium Amortization < Required 1 Unamortized Premium Required 2 > Carrying Value
A company issued 8%, 5-year bonds with a par value of $2,070,000, on January 1. Interest is to be paid semiannually each June 30 and December 31. The bonds were sold at $2,225,290 based on an annual market rate of 6%. The company uses the effective interest method of amortization. 1. Prepare an amortization table for the first two semiannual payment periods using the format shown below. 2. Prepare the journal entry to record the first semiannual interest payment. Enter answers in each of the following tabs. Required 1 Required 2 Prepare the journal entry to record the first semiannual interest payment. Note: Round your answers to 2 decimal places. View transaction list Journal entry worksheet < 1 Record the first semiannual interest payment on June 30. Note: Enter debits before credits. Date June 30 Record entry General Journal Clear entry Debit Credit View general journal >
Transcribed Image Text:A company issued 8%, 5-year bonds with a par value of $2,070,000, on January 1. Interest is to be paid semiannually each June 30 and December 31. The bonds were sold at $2,225,290 based on an annual market rate of 6%. The company uses the effective interest method of amortization. 1. Prepare an amortization table for the first two semiannual payment periods using the format shown below. 2. Prepare the journal entry to record the first semiannual interest payment. Enter answers in each of the following tabs. Required 1 Required 2 Prepare the journal entry to record the first semiannual interest payment. Note: Round your answers to 2 decimal places. View transaction list Journal entry worksheet < 1 Record the first semiannual interest payment on June 30. Note: Enter debits before credits. Date June 30 Record entry General Journal Clear entry Debit Credit View general journal >
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