he following partial amortization schedule is available for Carla Vista Co. who sold $600000, 5-year, 10% bonds on January 1, 2020 for $624000 and uses annual straight-line amortization.BOND AMORTIZATION SCHEDULEInterest PeriodsInterestto be paidInterestexpensePremiumAmortizationUnamortizedPremiumBond CarryingValueJanuary 1, 2020 $24000$624000January 1, 2021(i)(ii)(iii)(iv)(v)Which of the following amounts should be shown in cell (ii)?.$64800$48000$62400$55200

Bonds - Bonds are issued by the corporation to raise money. The Purchaser of the bonds is the one…

Answered: he following partial amortization…

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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he following partial amortization schedule is available for Carla Vista Co. who sold $600000, 5-year, 10% bonds on January 1, 2020 for $624000 and uses annual straight-line amortization.

Interest Periods	Interest to be paid	Interest expense	Premium Amortization	Unamortized Premium	Bond Carrying Value
BOND AMORTIZATION SCHEDULE
January 1, 2020				$24000	$624000
January 1, 2021	(i)	(ii)	(iii)	(iv)	(v)

Which of the following amounts should be shown in cell (ii)?.

$64800

$48000

$62400

$55200

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