Preparing a Bond Amortization Table (Straight Line) Campton Company issued 5-year, 7.5% bonds with a total face value of $900,000 January 1 for $944,000. The bonds pay interest on June 30 and December 31 of each year. Required: 1. Prepare an amortization table. If an amount box does not require an entry, leave it blank and if the answer is zero, enter "0". Campton Company Amortization Table Cash Interest Premium on Payment Expense Bonds Payable (Credit) (Debit) Period At issue $ 6/30/X1 12/31/X1 6/30/X2 12/31/X2 6/30/X3 12/31/X3 6/30/X4 12/31/X4 6/30/X5 12/31/X5 (Debit) Premium on Bonds Payable Carrying Balance Value 2. Prepare the entries to recognize the interest payments made on June 30 and December 31 of Year 1. If an amount box does not require an entry, leave it blank. If an amount box does not require an entry, leave it blank. 20X1 June 30 20X1 Dec. 31 Record interest expense Record interest expense BB 88
Preparing a Bond Amortization Table (Straight Line) Campton Company issued 5-year, 7.5% bonds with a total face value of $900,000 January 1 for $944,000. The bonds pay interest on June 30 and December 31 of each year. Required: 1. Prepare an amortization table. If an amount box does not require an entry, leave it blank and if the answer is zero, enter "0". Campton Company Amortization Table Cash Interest Premium on Payment Expense Bonds Payable (Credit) (Debit) Period At issue $ 6/30/X1 12/31/X1 6/30/X2 12/31/X2 6/30/X3 12/31/X3 6/30/X4 12/31/X4 6/30/X5 12/31/X5 (Debit) Premium on Bonds Payable Carrying Balance Value 2. Prepare the entries to recognize the interest payments made on June 30 and December 31 of Year 1. If an amount box does not require an entry, leave it blank. If an amount box does not require an entry, leave it blank. 20X1 June 30 20X1 Dec. 31 Record interest expense Record interest expense BB 88
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 13M
Related questions
Question
![Preparing a Bond Amortization Table (Straight Line)
Campton Company issued 5-year, 7.5% bonds with a total face value of $900,000 January 1 for
$944,000. The bonds pay interest on June 30 and December 31 of each year.
Required:
1. Prepare an amortization table. If an amount box does not require an entry, leave it blank and if
the answer is zero, enter "0".
Campton Company
Amortization Table
Cash
Interest Premium on
Payment Expense Bonds Payable
(Credit)
(Debit)
Period
At issue
$
6/30/X1
12/31/X1
6/30/X2
12/31/X2
6/30/X3
12/31/X3
6/30/X4
12/31/X4
6/30/X5
12/31/X5
(Debit)
Premium on
Bonds Payable Carrying
Balance
Value
2. Prepare the entries to recognize the interest payments made on June 30 and December 31 of Year
1. If an amount box does not require an entry, leave it blank. If an amount box does not require
an entry, leave it blank.
20X1 June 30
20X1 Dec. 31
Record interest expense
Record interest expense
BB
88](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F286c5147-0006-4344-8000-d23685c1e5bc%2Fe4d57e37-63dd-42f0-a21a-464b6c2e5d88%2Fgxi2lld_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Preparing a Bond Amortization Table (Straight Line)
Campton Company issued 5-year, 7.5% bonds with a total face value of $900,000 January 1 for
$944,000. The bonds pay interest on June 30 and December 31 of each year.
Required:
1. Prepare an amortization table. If an amount box does not require an entry, leave it blank and if
the answer is zero, enter "0".
Campton Company
Amortization Table
Cash
Interest Premium on
Payment Expense Bonds Payable
(Credit)
(Debit)
Period
At issue
$
6/30/X1
12/31/X1
6/30/X2
12/31/X2
6/30/X3
12/31/X3
6/30/X4
12/31/X4
6/30/X5
12/31/X5
(Debit)
Premium on
Bonds Payable Carrying
Balance
Value
2. Prepare the entries to recognize the interest payments made on June 30 and December 31 of Year
1. If an amount box does not require an entry, leave it blank. If an amount box does not require
an entry, leave it blank.
20X1 June 30
20X1 Dec. 31
Record interest expense
Record interest expense
BB
88
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