LHONDA: CAN you HELe mE SOLUE THIS? JUST SUME TIPS PLEASE? Before you begin, print out all the pages in this workbook. Otter Products Inc. issued bonds on January 1, 2019. Interest is to be paid semi-annually. Other information is as follows: I 'm CONFUSED! Term in years: 2 Tim CAMERON 315-600-7436 Face value of bonds issued: Issue price: Specified interest rate each payment period: $200,000 $206,000 6% Required: 1 Calculate: a. The amount of interest paid in cash every payment period. b. The amount of amortization to be recorded at each interest payment date (use the straight- line method). 2 Complete this amortization table by calculating interest expense, and beginning and ending bond carrying amounts at the end of each period over two years. 206, v00 Amortization Table A C tbl 3 % (A + D) Beg. Actual Periodic Ending bond carrying bond Periodic cash discount Period carrying interest interest (prem.) Year ending атount expense paid amort. I80 amount 206180 206365 206, u00 2019 Jun. 30 6180 206,180 6i 85 Dec. 31 2020 Jun. 30 2063 206576 191 197 Dec. 31 6197 2021 Jun. 30 Dec. 31 3 Calculate the actual interest rate under the straight-line method of amortization for each six- month period. Round all percentage calculations to two decimal placed. Use the following format: A B Six month Bond Six-month period carrying interest ending amount expense Year (B/A) 2019 Jun. 30 Dec. 31 2020 Jun. 30 Dec. 31 2021 Jun. 30 Dec. 31 4 Prepare the journal entry for December 31, 2019.
LHONDA: CAN you HELe mE SOLUE THIS? JUST SUME TIPS PLEASE? Before you begin, print out all the pages in this workbook. Otter Products Inc. issued bonds on January 1, 2019. Interest is to be paid semi-annually. Other information is as follows: I 'm CONFUSED! Term in years: 2 Tim CAMERON 315-600-7436 Face value of bonds issued: Issue price: Specified interest rate each payment period: $200,000 $206,000 6% Required: 1 Calculate: a. The amount of interest paid in cash every payment period. b. The amount of amortization to be recorded at each interest payment date (use the straight- line method). 2 Complete this amortization table by calculating interest expense, and beginning and ending bond carrying amounts at the end of each period over two years. 206, v00 Amortization Table A C tbl 3 % (A + D) Beg. Actual Periodic Ending bond carrying bond Periodic cash discount Period carrying interest interest (prem.) Year ending атount expense paid amort. I80 amount 206180 206365 206, u00 2019 Jun. 30 6180 206,180 6i 85 Dec. 31 2020 Jun. 30 2063 206576 191 197 Dec. 31 6197 2021 Jun. 30 Dec. 31 3 Calculate the actual interest rate under the straight-line method of amortization for each six- month period. Round all percentage calculations to two decimal placed. Use the following format: A B Six month Bond Six-month period carrying interest ending amount expense Year (B/A) 2019 Jun. 30 Dec. 31 2020 Jun. 30 Dec. 31 2021 Jun. 30 Dec. 31 4 Prepare the journal entry for December 31, 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
3. Calculate actual interest rate under straight -line method of amoritzation for each 6 month period .Please round 2 decimal places
Transcribed Image Text:LHONDA: CAN you HELe mE
JUST SUME TIPS PLEASE
SOLUE THIS?
Before you begin, print out all the pages in this workbook.
Otter Products Inc. issued bonds on January 1, 2019. Interest is to be paid semi-annually. Other
information is as follows:
Term in years:
I'm CONEUSEDI
2
TiM CAMARON
315-600-7436
Face value of bonds issued:
Issue price:
Specified interest rate each payment period:
$200,000
$206,000
6%
Required:
1 Calculate:
a. The amount of interest paid in cash every payment period.
b. The amount of amortization to be recorded at each interest payment date (use the straight-
line method).
26,
206,000
2 Complete this amortization table by calculating interest expense, and beginning and ending
bond carrying amounts at the end of each period over two years.
Amortization Table
A
(A + D)
Beg.
Actual
Periodic
bond
Periodic
Ending bond
carrying
cash
discount
Period
carrying
interest
interest
(prem.)
Year
ending
amount
expense
paid
amort.
атоunt
206, u00
206,160 61 85
206,305
206,576
206180
206365
2065 76
2019
Jun. 30
6180
Dec. 31
2020
Jun. 30
191
Dec. 31
6197
197
2021
Jun. 30
Dec. 31
3 Calculate the actual interest rate under the straight-line method of amortization for each six-
month period. Round all percentage calculations to two decimal placed. Use the following
format:
A
B
Six month
Bond
Six-month
period
carrying
interest
%
ending
атоunt
expense
Year
(B/A)
2019
Jun. 30
Dec. 31
2020
Jun. 30
Dec. 31
2021
Jun. 30
Dec. 31
4 Prepare the journal entry for December 31, 2019.
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