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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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:
1/1/20x1
12/31/20x1
12/31/20x2
12/31/20x3
12/31/20x4
Date
P10-10 Part 1
Date
1/1/20x1
12/31/20x1
12/31/20x2
12/31/20x3
12/31/20x4
$
Cash
$ 1,792
?
?
?
Required:
1. Complete the amortization schedule.
Note: Enter all your values in positive. Round your final answers to nearest whole dollar amount.
Cash
1,792 $
$
Interest
$ 1,661
?
?
1,640
Interest
1,661 $
1,640
Amortization
$ 131
?
145
?
Amortization
$
$
131 $
$
145
$
Balance
32,566
32,435
32,297
Balance
$ 32,566
32,435
32,297
?
32,000
32,000
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: 1/1/20x1 12/31/20x1 12/31/20x2 12/31/20x3 12/31/20x4 Date P10-10 Part 1 Date 1/1/20x1 12/31/20x1 12/31/20x2 12/31/20x3 12/31/20x4 $ Cash $ 1,792 ? ? ? Required: 1. Complete the amortization schedule. Note: Enter all your values in positive. Round your final answers to nearest whole dollar amount. Cash 1,792 $ $ Interest $ 1,661 ? ? 1,640 Interest 1,661 $ 1,640 Amortization $ 131 ? 145 ? Amortization $ $ 131 $ $ 145 $ Balance 32,566 32,435 32,297 Balance $ 32,566 32,435 32,297 ? 32,000 32,000
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