On December 31, 2024, when the market interest rate is 16%, Kennedy Realty issues $750,000 of 14.25%, 10-year Donds payable. The bonds pay interest semiannually. The present value of the bonds at issuance is $685,899 Requirements 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.) 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar) 12/31/2024 06/30/2025 12/31/2025 Cash Paid Interest Expense Amortized Carrying Amount
On December 31, 2024, when the market interest rate is 16%, Kennedy Realty issues $750,000 of 14.25%, 10-year Donds payable. The bonds pay interest semiannually. The present value of the bonds at issuance is $685,899 Requirements 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.) 2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar) 12/31/2024 06/30/2025 12/31/2025 Cash Paid Interest Expense Amortized Carrying Amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On December 31, 2024, when the market interest rate is 16%, Kennedy Realty issues $750,000 of 14.25%, 10-year
bonds payable. The bonds pay interest semiannually. The present value of the bonds at issuance is $685,899
Requirements
1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest
periods. (Round to the nearest dollar.)
2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest
payments.
Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two
semiannual interest periods. (Round to the nearest dollar.)
12/31/2024
06/30/2025
12/31/2025
Cash Paid
Interest
Expense
Amortized
Carrying
Amount
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