Schedule of Interest Income and Bond Premium Amortization Effective Interest Method Date Cash Received Interest Income 01/23 31/23 $ 31/24 31/25 31/26 31/27 $ $ $ $ $ Carrying A Premium Amortization of Bon $

Schedule of Interest Income and Bond Premium Amortization Effective Interest Method Date Cash Received Interest Income 01/23 31/23 $ 31/24 31/25 31/26 31/27 $ $ $ $ $ Carrying A Premium Amortization of Bon $

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 50BE

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Question

On January 1, 2023, Concord Limited paid $415,744 for 10% bonds with a maturity value of $385,000. The bonds provide the
bondholders with a 8% yield. They are dated January 1, 2023, and mature on January 1, 2028, with interest receivable on December
31 of each year. Concord accounts for the bonds using the amortized cost approach, applies ASPE using the effective interest
method, and has a December 31 year end.

Schedule of Interest Income
and Bond Premium Amortization
Effective Interest Method
Date
Cash Received
Interest Income
01/23
31/23 $
31/24
31/25
31/26
31/27
$
$
$
$
$
Carrying A
Premium Amortization
of Bon
$

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