On January 1 of this year, Ikuta Company issued a bond with a face value of $130,000 and a coupon rate of 4 percent. The bond matures in three years and pays interest every December 31. When the bond was issued, the annual market interest rate was 5 percent. Ikuta uses the effective-interest amortization method. (FV of $1, PV of $1, EVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Complete a bond amortization schedule for all three years of the bond's life. 2. What amounts will be reported on the statement of earnings and the statement of financial position at the end of year 1 and year 2? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete a bond amortization schedule for all three years of the bond's life. (Round your intermediate calculations and final answers to whole dollars.)

On January 1 of this year, Ikuta Company issued a bond with a face value of $130,000 and a coupon rate of 4 percent. The bond matures in three years and pays interest every December 31. When the bond was issued, the annual market interest rate was 5 percent. Ikuta uses the effective-interest amortization method. (FV of $1, PV of $1, EVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Complete a bond amortization schedule for all three years of the bond's life. 2. What amounts will be reported on the statement of earnings and the statement of financial position at the end of year 1 and year 2? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete a bond amortization schedule for all three years of the bond's life. (Round your intermediate calculations and final answers to whole dollars.)

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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