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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.

FINANCIAL ACCOUNTING
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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3. Calculate actual interest rate under straight -line method of amoritzation for each 6 month period .Please round 2 decimal places 

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.
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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