Please let me know how I can find out whether something is premium or a discount. It would also be really helpful if you included the formula for both if there is one?Please answer the question in the picture I have attached another one with the completed chart in case it is needed. Required information[The following information applies to the questions displayed below.]On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bondsmature at the end of four years. Olive uses the effective-interest amortization method. The partially completedamortization schedule below pertains to the bonds:DateJanuary 1, Year 1End of Year 1End of Year 2End of Year 3End of Year 4CashPremium$ 3,600???Interest$ 3,417??3,376Amortization$ 183?210?Balance$ 48,81348,63048,434?48,0004. Were the bonds issued at a premium or a discount? If so, what was the amount of the premium or discount? DateJanuary 1, Year 1End of Year 1End of Year 2End of Year 3End of Year 4$$Cash3,6003,600 $3,600$3,600$InterestAmortizationSA3,4173,404 $3,390 $3,376$183196$210$224 $Balance48,81348,63048,43448,22448,000

Bonds are issued at a premium when the issue price is higher than the face value of the bond Bonds…

Answered: ar 1 $ $ $ A 3,600 $ 3,600 $ 3,600 $ $…

Business

Accounting

ar 1 $ $ $ A 3,600 $ 3,600 $ 3,600 $ $ 3 600 3,417 $ 3,404 $ 3,390 $ 3 376 $ $ $ 183 196 $ 210 $ 224 $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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