Problem 2 Bond Amortization (Premium) On January 1, 2022, Skyfall Inc. received permission to issue a 5-year bond with a face value of P6,000,000 The nominal rate is 12% and is payable annually every December 31. The face value of the bond will be repaic in full after 5 years. On January 1, 2022, Skyfall Inc. sold the bonds for P6,454,894.41with an effective yield of 10%. Using the effective interest method, complete the amortization table. Interest Payments Interest Expense Carrying Value Date January 1, 2022 December 31, 2022 December 31, 2023 Amortization

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Problem 2 Bond Amortization (Premium)
On January 1, 2022, Skyfall Inc. received permission to issue a 5-year bond with a face value of P6,000,000.
The nominal rate is 12% and is payable annually every December 31. The face value of the bond will be repaid
in full after 5 years.
On January 1, 2022, Skyfall Inc. sold the bonds for P6,454,894.41with an effective yield of 10%. Using the
effective interest method, complete the amortization table.
Date
Interest Payments
Interest Expense
Amortization
Carrying Value
January 1, 2022
December 31, 2022
December 31, 2023
December 31, 2024
December 31, 2025
December 31, 2026
Transcribed Image Text:Problem 2 Bond Amortization (Premium) On January 1, 2022, Skyfall Inc. received permission to issue a 5-year bond with a face value of P6,000,000. The nominal rate is 12% and is payable annually every December 31. The face value of the bond will be repaid in full after 5 years. On January 1, 2022, Skyfall Inc. sold the bonds for P6,454,894.41with an effective yield of 10%. Using the effective interest method, complete the amortization table. Date Interest Payments Interest Expense Amortization Carrying Value January 1, 2022 December 31, 2022 December 31, 2023 December 31, 2024 December 31, 2025 December 31, 2026
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