Bonds Issued at a Premium (Effective Interest)Cookie Dough Corporation issued $1,500,000 in 7%, 10-year bonds (payable on December 31, 2030) on January 1, 2021, for $1,665,000. Interest is paid on June 30 and December 31. The market rate of interest is 6%.Required:Prepare the amortization table through December 31, 2023, using the effective interest rate method. If an amount box does not require an entry, leave it blank and if the answer is zero, enter "0". If required, round your answers to the nearest whole dollar.Cookie Dough CorporationAmortization Table PeriodCash Payment (Credit)Interest Expense (Debit)Premium on Bonds Payable (Debit)Premium on Bonds Payable BalanceCarrying ValueAt issue$fill in the blank 1$fill in the blank 2$fill in the blank 3$fill in the blank 4$fill in the blank 56/30/21fill in the blank 6fill in the blank 7fill in the blank 8fill in the blank 9fill in the blank 1012/31/21fill in the blank 11fill in the blank 12fill in the blank 13fill in the blank 14fill in the blank 156/30/22fill in the blank 16fill in the blank 17fill in the blank 18fill in the blank 19fill in the blank 2012/31/22fill in the blank 21fill in the blank 22fill in the blank 23fill in the blank 24fill in the blank 256/30/23fill in the blank 26fill in the blank 27fill in the blank 28fill in the blank 29fill in the blank 3012/31/23fill in the blank 31fill in the blank 32fill in the blank 33fill in the blank 34fill in the blank 35

Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

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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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Bonds Issued at a Premium (Effective Interest)

Cookie Dough Corporation issued $1,500,000 in 7%, 10-year bonds (payable on December 31, 2030) on January 1, 2021, for $1,665,000. Interest is paid on June 30 and December 31. The market rate of interest is 6%.

Required:

Prepare the amortization table through December 31, 2023, using the effective interest rate method. If an amount box does not require an entry, leave it blank and if the answer is zero, enter "0". If required, round your answers to the nearest whole dollar.

Cookie Dough Corporation
Amortization Table

Period	Cash Payment (Credit)	Interest Expense (Debit)	Premium on Bonds Payable (Debit)	Premium on Bonds Payable Balance	Carrying Value
At issue	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3	$fill in the blank 4	$fill in the blank 5
6/30/21	fill in the blank 6	fill in the blank 7	fill in the blank 8	fill in the blank 9	fill in the blank 10
12/31/21	fill in the blank 11	fill in the blank 12	fill in the blank 13	fill in the blank 14	fill in the blank 15
6/30/22	fill in the blank 16	fill in the blank 17	fill in the blank 18	fill in the blank 19	fill in the blank 20
12/31/22	fill in the blank 21	fill in the blank 22	fill in the blank 23	fill in the blank 24	fill in the blank 25
6/30/23	fill in the blank 26	fill in the blank 27	fill in the blank 28	fill in the blank 29	fill in the blank 30
12/31/23	fill in the blank 31	fill in the blank 32	fill in the blank 33	fill in the blank 34	fill in the blank 35

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