P10-10 (Algo) Preparing a Bond Amortization Schedule for a Bond Issued at a Premium LO10-5 [The following information applies to the questions displayed below.] On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Interest $ 1,661 ? ? 1,640 Date January 1, Year 1 End of Year 1 End of Year 2 End of Year 3 End of Year 4 -10 Part 2 Cash $ 1,792 ? cipal amount ? ? Amortization $ 131 ? 145 ? Balance $ 32,566 32,435 32,297 ? 32,000 hen the bonds mature at the end of Year 4, what amount of principal will Olive pay investors?
P10-10 (Algo) Preparing a Bond Amortization Schedule for a Bond Issued at a Premium LO10-5 [The following information applies to the questions displayed below.] On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Interest $ 1,661 ? ? 1,640 Date January 1, Year 1 End of Year 1 End of Year 2 End of Year 3 End of Year 4 -10 Part 2 Cash $ 1,792 ? cipal amount ? ? Amortization $ 131 ? 145 ? Balance $ 32,566 32,435 32,297 ? 32,000 hen the bonds mature at the end of Year 4, what amount of principal will Olive pay investors?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required Information
P10-10 (Algo) Preparing a Bond Amortization Schedule for a Bond Issued at a Premium LO10-5
[The following information applies to the questions displayed below.]
On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds
mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed
amortization schedule below pertains to the bonds:
Interest
$ 1,661
?
Date
January 1, Year 1
End of Year 1
End of Year 2
End of Year 3
End of Year 4.
P10-10 Part 2
Cash
$ 1,792
?
?
?
Principal amount
?
1,640
Amortization
$ 131
?
145
?
Balance
$ 32,566
32,435
32,297
?
32,000
2. When the bonds mature at the end of Year 4, what amount of principal will Olive pay investors?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F098ae19a-f9fa-457e-ada3-494b921c33a0%2F5bac386c-a064-40fb-b407-9b468e8cad31%2Fp9tsb2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
P10-10 (Algo) Preparing a Bond Amortization Schedule for a Bond Issued at a Premium LO10-5
[The following information applies to the questions displayed below.]
On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds
mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed
amortization schedule below pertains to the bonds:
Interest
$ 1,661
?
Date
January 1, Year 1
End of Year 1
End of Year 2
End of Year 3
End of Year 4.
P10-10 Part 2
Cash
$ 1,792
?
?
?
Principal amount
?
1,640
Amortization
$ 131
?
145
?
Balance
$ 32,566
32,435
32,297
?
32,000
2. When the bonds mature at the end of Year 4, what amount of principal will Olive pay investors?
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