Oak Branch Inc. issued $720,000 of 4%, 10-year bonds when the market rate was 3%. They received $781,821. Interest was paid semi-annually. Prepare an amortization table for the first three years of the bonds. Round intermediate and fin answers to whole dollar amount. Cash Interest Interest on Amortization of Payment Carrying Value Premium Carrying Value Jan. 1, Year 1 June 30, Year 1 Dec. 31, Year 1 June 30, Year 2 Dec. 31, Year 2 June 30, Year 3 Dec. 31, Year 3

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%
Oak Branch Inc. issued $720,000 of 4%, 10-year bonds when the market rate was 3%. They received $781,821. Interest was paid semi-annually. Prepare an amortization table for the first three years of the bonds. Round intermediate and final
answers to whole dollar amount.
Cash Interest
Interest on
Amortization of
Payment
Carrying Value
Premium
Carrying Value
Jan. 1, Year 1
June 30, Year 1
Dec. 31, Year 1
June 30, Year 2
Dec. 31, Year 2
June 30, Year 3
Dec. 31, Year 3
Transcribed Image Text:Oak Branch Inc. issued $720,000 of 4%, 10-year bonds when the market rate was 3%. They received $781,821. Interest was paid semi-annually. Prepare an amortization table for the first three years of the bonds. Round intermediate and final answers to whole dollar amount. Cash Interest Interest on Amortization of Payment Carrying Value Premium Carrying Value Jan. 1, Year 1 June 30, Year 1 Dec. 31, Year 1 June 30, Year 2 Dec. 31, Year 2 June 30, Year 3 Dec. 31, Year 3
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Receivables Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education