Preparing a Bond Amortization Table (Straight Line) On January 1, 2025, Distel Company borrowed $27,000 by issuing 3-year, 8.5% bonds with a face amount of $25,000. Interest is paid annually on December 31. Required: Prepare an amortization table. If an amount box does not require an entry, leave it blank and if the answer is zero, enter "0". Round to the nearest dollar and if necessary, round final year to amortize full amount of premium. Period At issue Cash Payment (Credit) 12/31/25 2,125 ✔ 12/31/26 2,125 ✔ 12/31/27 2,125 ✔ Distel Company Amortization Table Interest Expense (Debit) 1,333 X 1,333 X 1,333 X Premium on Bonds Payable (Debit) 667 667 667 X Premium on Bonds Payable Balance 2,000 667 X 668 X 0 Carrying Value 27,000 26,667 X 25,834 X 25,000
Preparing a Bond Amortization Table (Straight Line) On January 1, 2025, Distel Company borrowed $27,000 by issuing 3-year, 8.5% bonds with a face amount of $25,000. Interest is paid annually on December 31. Required: Prepare an amortization table. If an amount box does not require an entry, leave it blank and if the answer is zero, enter "0". Round to the nearest dollar and if necessary, round final year to amortize full amount of premium. Period At issue Cash Payment (Credit) 12/31/25 2,125 ✔ 12/31/26 2,125 ✔ 12/31/27 2,125 ✔ Distel Company Amortization Table Interest Expense (Debit) 1,333 X 1,333 X 1,333 X Premium on Bonds Payable (Debit) 667 667 667 X Premium on Bonds Payable Balance 2,000 667 X 668 X 0 Carrying Value 27,000 26,667 X 25,834 X 25,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A 253.
Transcribed Image Text:Preparing a Bond Amortization Table (Straight Line)
On January 1, 2025, Distel Company borrowed $27,000 by issuing 3-year, 8.5% bonds with a face amount of $25,000. Interest is paid annually on December 31.
Required:
Prepare an amortization table. If an amount box does not require an entry, leave it blank and if the answer is zero, enter "0". Round to the nearest dollar and if
necessary, round final year to amortize full amount of premium.
Cash
Payment
(Credit)
Period
At issue
12/31/25 2,125
12/31/26 2,125
12/31/27 2,125
Distel Company
Amortization Table
Interest
Expense
(Debit)
1,333 X
1,333 X
1,333 X
Premium on
Bonds Payable
(Debit)
667
667
667 X
Premium on
Bonds Payable
Balance
2,000 ✓
667 X
668
X
0
Carrying
Value
27,000
26,667 X
25,834 X
25,000
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