(A *D) (H - 1) (K* E) Jan 1 2019 June 30, 2019 December 31, 2019 June 30, 2020 December 31, 2020 June 30, 2021 December 31, 2021 June 30, 2022 December 31, 20222 June 30, 2023 December 31, 2023 Jan 1 June Dec 3 June Dec
(A *D) (H - 1) (K* E) Jan 1 2019 June 30, 2019 December 31, 2019 June 30, 2020 December 31, 2020 June 30, 2021 December 31, 2021 June 30, 2022 December 31, 20222 June 30, 2023 December 31, 2023 Jan 1 June Dec 3 June Dec
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![ABC company issued a 5 year $200,000 bond. The bond has a stated rate of
6% and the market rate is also 6%. The company issued the bond at 100 on
AMORTIZATION OF BOND (PAR)
st
January 1", 2019.
H
J
K
Interest on
Cash Interest
Amortization
Carrying
Carrying
Year
Рayment.
of Prem/Disc. Value
(к
Date
Description
Debit
Credit
Value.
(A *D)
(H - 1)
-J)
(K * E)
Jan 1 2019
Jan 1, 2019
June 30, 2019
December 31, 2019
June 30, 2020
December 31, 2020
June 30, 2021
December 31, 2021
June 30, 2022
December 31, 20222
June 30, 2023
December 31, 2023
|June 30, 2019
Dec 3, 2019
June 30, 2020
Dec 31, 2020
A
Bond Par Value
Disc/Prem on Bonds Payable
В
Coupon Rate
C
Market Rate
Dec 31,2023
6month coupon rate (B/2)
6 month market rate (C/2)
D
E
F
Money Received
G
Premium/Discount (A-F)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe2d86f43-8a5e-4e6b-9aa8-8d6557d71be3%2F4301ccb6-3d79-4b47-ba87-5d8068bdcd9b%2F68lzaf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ABC company issued a 5 year $200,000 bond. The bond has a stated rate of
6% and the market rate is also 6%. The company issued the bond at 100 on
AMORTIZATION OF BOND (PAR)
st
January 1", 2019.
H
J
K
Interest on
Cash Interest
Amortization
Carrying
Carrying
Year
Рayment.
of Prem/Disc. Value
(к
Date
Description
Debit
Credit
Value.
(A *D)
(H - 1)
-J)
(K * E)
Jan 1 2019
Jan 1, 2019
June 30, 2019
December 31, 2019
June 30, 2020
December 31, 2020
June 30, 2021
December 31, 2021
June 30, 2022
December 31, 20222
June 30, 2023
December 31, 2023
|June 30, 2019
Dec 3, 2019
June 30, 2020
Dec 31, 2020
A
Bond Par Value
Disc/Prem on Bonds Payable
В
Coupon Rate
C
Market Rate
Dec 31,2023
6month coupon rate (B/2)
6 month market rate (C/2)
D
E
F
Money Received
G
Premium/Discount (A-F)
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