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: Date 1/1/20x1 12/31/20x1 12/31/20x2 12/31/20x3 12/31/20x4 Cash $ 1,792 ? ? ? Interest $ 1,661 ? ? 1,640 Amortization $ 131 ? 145 ? Balance $ 32,566 32,435 32,297 ? 32,000
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: Date 1/1/20x1 12/31/20x1 12/31/20x2 12/31/20x3 12/31/20x4 Cash $ 1,792 ? ? ? Interest $ 1,661 ? ? 1,640 Amortization $ 131 ? 145 ? Balance $ 32,566 32,435 32,297 ? 32,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 96PSB
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