On September 30, 2023, when the market interest rate is 9 percent, Score Ltd. issues $8,000,000 of 11-percent, 20-year bonds for $9.472,126. The bonds pe 30. Score Ltd, amortizes bond premium by the effective-interest method. Required 1. Prepare an amortization table for the first four semi-annual interest periods. Score amortizes a bond premium by the effective-interest method. 2. Record the issuance of the bonds on September 30, 2023, the accrual of interest on December 31, 2023, and the semi-annual interest payment on March 2 Requirement 1. Prepare an amortization table for the first four semi-annual interest periods. (Round your answers to the nearest whole dollar.) B: Interest Expense (4.5% of Preceding Bond Carrying Amount) A: Interest Payment Semi-annual Interest (5.5% of Maturity Period Values) Issue date March 31, 2024 September 30, 2024 March 31, 2025 September 30, 2025 440,000 440,000 440,000 440,000 426,245 KILE C: Premium D: Unamortized Amortization Premium Account (A-B) Balance (D-C) 13,755 E: Bond Carrying Amount ($8,000,000 + D)
On September 30, 2023, when the market interest rate is 9 percent, Score Ltd. issues $8,000,000 of 11-percent, 20-year bonds for $9.472,126. The bonds pe 30. Score Ltd, amortizes bond premium by the effective-interest method. Required 1. Prepare an amortization table for the first four semi-annual interest periods. Score amortizes a bond premium by the effective-interest method. 2. Record the issuance of the bonds on September 30, 2023, the accrual of interest on December 31, 2023, and the semi-annual interest payment on March 2 Requirement 1. Prepare an amortization table for the first four semi-annual interest periods. (Round your answers to the nearest whole dollar.) B: Interest Expense (4.5% of Preceding Bond Carrying Amount) A: Interest Payment Semi-annual Interest (5.5% of Maturity Period Values) Issue date March 31, 2024 September 30, 2024 March 31, 2025 September 30, 2025 440,000 440,000 440,000 440,000 426,245 KILE C: Premium D: Unamortized Amortization Premium Account (A-B) Balance (D-C) 13,755 E: Bond Carrying Amount ($8,000,000 + D)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![On September 30, 2023, when the market interest rate is 9 percent, Score Ltd. issues $8,000,000 of 11-percent, 20-year bonds for $9,472,126. The bonds pay
30. Score Ltd, amortizes bond premium by the effective-interest method.
Required
1. Prepare an amortization table for the first four semi-annual interest periods. Score amortizes a bond premium by the effective-interest method.
2. Record the issuance of the bonds on September 30, 2023, the accrual of interest on December 31, 2023, and the semi-annual interest payment on March 3
Requirement 1. Prepare an amortization table for the first four semi-annual interest periods. (Round your answers to the nearest whole dollar.)
B: Interest Expense
(4.5% of Preceding
Bond Carrying
Amount)
A: Interest Payment
Semi-annual Interest (5.5% of Maturity
Period
Values)
Issue date.
March 31, 2024
September 30, 2024
March 31, 2025
September 30, 2025
440,000
440,000
440,000
440,000
426,245
C: Premium
Amortization
(A-B)
13,755
D: Unamortized
Premium Account
Balance (D-C)
E: Bond Carrying
Amount ($8,000,000
+ D)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdbe3e682-0170-4e5e-a448-703bb6b4ca93%2Fbc1ebcbf-5230-4d26-9bc6-74c24b0676fc%2F5xppdmg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On September 30, 2023, when the market interest rate is 9 percent, Score Ltd. issues $8,000,000 of 11-percent, 20-year bonds for $9,472,126. The bonds pay
30. Score Ltd, amortizes bond premium by the effective-interest method.
Required
1. Prepare an amortization table for the first four semi-annual interest periods. Score amortizes a bond premium by the effective-interest method.
2. Record the issuance of the bonds on September 30, 2023, the accrual of interest on December 31, 2023, and the semi-annual interest payment on March 3
Requirement 1. Prepare an amortization table for the first four semi-annual interest periods. (Round your answers to the nearest whole dollar.)
B: Interest Expense
(4.5% of Preceding
Bond Carrying
Amount)
A: Interest Payment
Semi-annual Interest (5.5% of Maturity
Period
Values)
Issue date.
March 31, 2024
September 30, 2024
March 31, 2025
September 30, 2025
440,000
440,000
440,000
440,000
426,245
C: Premium
Amortization
(A-B)
13,755
D: Unamortized
Premium Account
Balance (D-C)
E: Bond Carrying
Amount ($8,000,000
+ D)
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