Required information [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 Cash Interest Amortization Balance $ 48,813 12/31/20x2 $ 3,600 ? $ 3,417 ? $ 183 ? 48,630 48,434 12/31/20x3 12/31/20x4 ? ? ? 210 ? 3,376 ? 48,000 What amount of interest expense will be reported on the income statement for 20x2 and 20x3? ote: Round your final answers to nearest whole dollar amount. Interest Expense 2/31/20x2 3/31/30 $ 3,404
Required information [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 Cash Interest Amortization Balance $ 48,813 12/31/20x2 $ 3,600 ? $ 3,417 ? $ 183 ? 48,630 48,434 12/31/20x3 12/31/20x4 ? ? ? 210 ? 3,376 ? 48,000 What amount of interest expense will be reported on the income statement for 20x2 and 20x3? ote: Round your final answers to nearest whole dollar amount. Interest Expense 2/31/20x2 3/31/30 $ 3,404
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
[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
Cash
Interest
Amortization
Balance
$ 48,813
12/31/20x2
$ 3,600
?
$ 3,417
?
$ 183
?
48,630
48,434
12/31/20x3
12/31/20x4
?
?
?
210
?
3,376
?
48,000
8. What amount of interest expense will be reported on the income statement for 20x2 and 20x3?
Note: Round your final answers to nearest whole dollar amount.
Interest Expense
12/31/20x2
12/31/20x3
$
3,404](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e415e89-b15c-4691-b794-c1f1bc8f0e90%2Fdd5e74a7-891d-4d49-8563-67af5362f2bc%2Fyrk0bpkc_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[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
Cash
Interest
Amortization
Balance
$ 48,813
12/31/20x2
$ 3,600
?
$ 3,417
?
$ 183
?
48,630
48,434
12/31/20x3
12/31/20x4
?
?
?
210
?
3,376
?
48,000
8. What amount of interest expense will be reported on the income statement for 20x2 and 20x3?
Note: Round your final answers to nearest whole dollar amount.
Interest Expense
12/31/20x2
12/31/20x3
$
3,404
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