Question Content AreaOak Branch Inc. issued $860,000 of 7%, 10-year bonds when the market rate was 6%. They received $923,988. Interest was paid semi-annually. Prepare an amortization table for the first three years of the bonds. Round intermediate and final answers to whole dollar amount. Cash InterestPaymentInterest onCarrying ValueAmortization ofPremiumCarrying ValueJan. 1, Year 1 $fill in the blank 1June 30, Year 1$fill in the blank 2 $fill in the blank 3 $fill in the blank 4 fill in the blank 5Dec. 31, Year 1fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9June 30, Year 2fill in the blank 10 fill in the blank 11 fill in the blank 12 fill in the blank 13Dec. 31, Year 2fill in the blank 14 fill in the blank 15 fill in the blank 16 fill in the blank 17June 30, Year 3fill in the blank 18 fill in the blank 19 fill in the blank 20 fill in the blank 21Dec. 31, Year 3fill in the blank 22 fill in the blank 23 fill in the blank 24 fill in the blank 25

Amortization: Each installment payment is the same amount in total for each period. In an…

Answered: Question Content Area Oak Branch Inc.…

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 7MCQ

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Question Content Area

Oak Branch Inc. issued $860,000 of 7%, 10-year bonds when the market rate was 6%. They received $923,988. Interest was paid semi-annually. Prepare an amortization table for the first three years of the bonds. Round intermediate and final answers to whole dollar amount.

	Cash Interest Payment	Interest on Carrying Value	Amortization of Premium	Carrying Value
Jan. 1, Year 1				$fill in the blank 1
June 30, Year 1	$fill in the blank 2	$fill in the blank 3	$fill in the blank 4	fill in the blank 5
Dec. 31, Year 1	fill in the blank 6	fill in the blank 7	fill in the blank 8	fill in the blank 9
June 30, Year 2	fill in the blank 10	fill in the blank 11	fill in the blank 12	fill in the blank 13
Dec. 31, Year 2	fill in the blank 14	fill in the blank 15	fill in the blank 16	fill in the blank 17
June 30, Year 3	fill in the blank 18	fill in the blank 19	fill in the blank 20	fill in the blank 21
Dec. 31, Year 3	fill in the blank 22	fill in the blank 23	fill in the blank 24	fill in the blank 25

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