On January 1, 2024, White Water issues $450,000 of 6% bonds, due in 20 years, with interest payable annually on December 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $402,327. Exercise 9-17 (Algo) Part 1 Required: 1. Complete the first three rows of an amortization schedule. (Hint: Use Illustration 9–6, except the dates for the first three rows will be 1/1/2024, 12/31/2024, and 12/31/2025 since interest is payable annually rather than semiannually. Interest expense for the period ended December 31, 2024, is calculated as the carrying value of $402,327 times the market rate of 7%.) (Round your final answers to the nearest whole dollar.)
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Exercise 9-17 (Algo) Record bonds issued at a discount and related annual interest (LO9-5)
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On January 1, 2024, White Water issues $450,000 of 6% bonds, due in 20 years, with interest payable annually on December 31 each year.
Assuming the market interest rate on the issue date is 7%, the bonds will issue at $402,327.
Exercise 9-17 (Algo) Part 1
Required:
1. Complete the first three rows of an amortization schedule. (Hint: Use Illustration 9–6, except the dates for the first three rows will be 1/1/2024, 12/31/2024, and 12/31/2025 since interest is payable annually rather than semiannually. Interest expense for the period ended December 31, 2024, is calculated as the carrying value of $402,327 times the market rate of 7%.) (Round your final answers to the nearest whole dollar.)
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