On December 31, 2024, when the market interest rate is 8%, Biggs Realty issues $450,000 of 5.25%, 10-year bonds payable. The bonds pay interest semiannually. The present value of the bonds at issuance is $365,732. 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.
On December 31, 2024, when the market interest rate is 8%, Biggs Realty issues $450,000 of 5.25%, 10-year bonds payable. The bonds pay interest semiannually. The present value of the bonds at issuance is $365,732. 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.
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 8%, Biggs Realty issues $450,000 of 5.25%, 10-year bonds
payable. The bonds pay interest semiannually. The present value of the bonds at issuance is $365,732.
Of 4
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)
4
12/31/2024
06/30/2025
12/31/2025
Cash Paid
Interest
Expense
Amortized
Carrying
Amount
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