Shuttle Company issued $1,000,000, three-year, 10 percent bonds on January 1, year 1. The bond interest is paid each December 31,the end of the company's fiscal year. The bond was sold to yield 9 percent. Use Table 9C.1, Table 9C.2. (Round time value factor to 4decimal places.)Required:1. Complete a bond payment schedule. Use the effective-interest amortization method. (Make sure that the unamortizeddiscount/premium equals to '0' and the Net Liability equals to face value of the bond in the last period. Interest expense in the lastperiod should be calculated as Cash Interest (+) discount / (−) premium amortized. Round intermediate and final answers to thenearest whole dollar.)Date1/1/year 112/31/year 112/31/year 212/31/year 3Interest expenseBonds payableInterest paymentIssuance of bondsPayment of bondsBond Payment ScheduleInterestExpenseCash Payment$100,000100,000100,000Amortizationof Premium2. What amounts will be reported on the financial statements (statement of financial position, statement of earnings, and statement ofcash flows) for year 1, year 2, and year 3? (Round intermediate and final answers to the nearest whole dollar.)Year 1CarryingAmountYear 2Year 3 TABLE 9C.1Present Value of $1, p = 1/(1+i)nPeriods 1.5% 1.75% 2% 2.25% 2.5% 2.75% 3% 3.25% 3.5%10.96620.9732 0.9709 0.96850.94720.9472 0.9426 0.938020.93350.9852 0.9828 0.9804 0.9780 0.97560.9707 0.9659 0.9612 0.9565 0.95183 0.9563 0.9493 0.9423 0.9354 0.92860.9422 0.9330 0.9238 0.91480.9218 0.91510.9151 0.90850.901940.90600.8972 0.8885 0.87990.871450.9283 0.91690.9057 0.89470.88390.883960.9145 0.9011 0.88800.88800.87500.87500.8623 0.84980.86230.8498 0.8375 0.8254 0.813570.9010 0.88560.87060.85580.8413 0.8270 0.81310.8131 0.79940.7994 0.786080.8877 0.8704 0.85350.8369 0.82070.80490.7894 0.7742 0.759490.8746 0.85540.83680.81850.78340.8007 0.78340.80070.7664 0.74990.7664 0.74990.7337100.8617 0.84070.82030.80050.78120.7624 0.7441 0.7263 0.708911121314150.87320.8732 0.862612345670.85220.8626 0.8522 0.84200.8489 0.82630.8043 0.7829 0.76210.8043 0.7829 0.76210.74200.7420 0.7224 0.7034 0.68490.8364 0.81210.78850.76570.74360.7221 0.7014 0.6813 0.66180.6810 0.6598 0.63940.7488 0.72540.66110.6611 0.63910.61780.8240 0.7981 0.77300.70280.8118 0.7844 0.7579 0.7323 0.7077 0.68400.7999 0.7709 0.74300.6905 0.66570.7880 0.7576 0.7284 0.70050.71620.6419 0.6189 0.5969160.67360.64790.6232 0.5995 0.5767170.65720.6305 0.6050 0.5806 0.55720.7764 0.7446 0.7142 0.68510.6700 0.6412180.61370.5874 0.5623 0.5384190.7649 0.7318 0.70020.7536 0.7192 0.6864 0.65520.7425 0.7068 0.6730 0.64080.62550.5972 0.57030.5703 0.54460.52022030400.6103 0.5813 0.5537 0.5275 0.50260.6398 0.5942 0.5521 0.5130 0.4767 0.44310.5130 0.4767 0.4431 0.4120 0.3831 0.35630.5513 0.4996 0.4529 0.4106 0.3724 0.3379 0.3066 0.2782 0.252650 0.4750 0.4200 0.3715 0.3287 0.2909 0.2576 0.2281 0.2021 0.1791Periods 3.75% 4% 4.5% 5%6%7%8% 9% 10%0.9639 0.9615 0.9569 0.9524 0.9434 0.93460.9524 0.9434 0.9346 0.9259 0.9174 0.90910.9290 0.9246 0.9157 0.9070 0.89000.8954 0.8890 0.8763 0.8638 0.83960.8386 0.8227 0.79210.8025 0.7835 0.74730.8734 0.8573 0.8417 0.82640.8163 0.7938 0.7722 0.75130.76290.8631 0.85480.7350 0.7084 0.68300.8319 0.82190.71300.6806 0.6499 0.62090.7462 0.7050 0.6663 0.6302 0.5963 0.56450.8018 0.79030.76790.7728 0.7599 0.73480.71070.66510.62270.5835 0.5470 0.513280.67680.62740.58200.54030.5403 0.50190.50190.46650.7449 0.7307 0.70320.7180 0.7026 0.6729 0.644690.5919 0.54390.5002 0.4604 0.4241100.5083 0.4632 0.4224 0.3855110.4751 0.4289 0.3875 0.3505120.3971 0.3555 0.3186130.6197 0.6006 0.5643 0.5303140.5973 0.5775 0.5400 0.5051150.6920 0.6756 0.6439 0.6139 0.55840.6670 0.6496 0.6162 0.5847 0.52680.6429 0.6246 0.5897 0.5568 0.4970 0.44400.4688 0.4150 0.36770.3677 0.3262 0.28970.4423 0.38780.4423 0.3878 0.3405 0.2992 0.26330.5757 0.5553 0.5167 0.4810 0.4173 0.3624 0.3152 0.2745 0.23940.5549 0.5339 0.4945 0.4581 0.3936 0.3387 0.2919 0.2519 0.21760.5348 0.5134 0.4732 0.4363 0.3714 0.3166 0.2703 0.2311 0.19780.5155 0.4936 0.4528 0.4155 0.3503 0.29590.4969 0.4746 0.4333 0.3957 0.33050.4789 0.4564 0.4146 0.3769 0.3118 0.25840.31180.3314 0.3083 0.2670 0.23141617180.2959 0.2502 0.2120 0.1799190.2765 0.2317 0.1945 0.16350.2765200.2584 0.2145 0.1784 0.14860.17410.1314 0.0994 0.0754 0.05733040 0.2293 0.2083 0.1719 0.14200.0972 0.06680.0972 0.06680.0460 0.0318 0.0221500.1587 0.1407 0.1107 0.08720.0213 0.0134 0.00850.0543 0.03390.0543 0.0339

Bond valuation is a method of determining the price of a bond. This method is adopted by the bond…

Shuttle Company issued $1,000,000, three-year, 10 percent bonds on January 1, year 1. The bond interest is paid each December 31 he end of the company's fiscal year. The bond was sold to yield 9 percent. Use Table 9C.1, Table 9C.2. (Round time value factor to decimal places.) Required: . Complete a bond payment schedule. Use the effective-interest amortization method. (Make sure that the unamortized discount/premium equals to 'O' and the Net Liability equals to face value of the bond in the last period. Interest expense in the period should be calculated as Cash Interest (+) discount / (-) premium amortized. Round intermediate and final answers to the hearest whole dollar.) Date 1/1/year 1 12/31/year 1 12/31/year 2 12/31/year 3 Interest expense Bonds payable Interest payment Bond Payment Schedule Interest Expense Cash Payment $ 100,000 100,000 100,000 Amortization of Premium 2. What amounts will be reported on the financial statements (statement of financial position, statement of earnings, and statement cash flows) for year 1, year 2, and year 3? (Round intermediate and final answers to the nearest whole dollar.) Year 1 Carrying Amount Year 2 Year 3

Shuttle Company issued $1,000,000, three-year, 10 percent bonds on January 1, year 1. The bond interest is paid each December 31 he end of the company's fiscal year. The bond was sold to yield 9 percent. Use Table 9C.1, Table 9C.2. (Round time value factor to decimal places.) Required: . Complete a bond payment schedule. Use the effective-interest amortization method. (Make sure that the unamortized discount/premium equals to 'O' and the Net Liability equals to face value of the bond in the last period. Interest expense in the period should be calculated as Cash Interest (+) discount / (-) premium amortized. Round intermediate and final answers to the hearest whole dollar.) Date 1/1/year 1 12/31/year 1 12/31/year 2 12/31/year 3 Interest expense Bonds payable Interest payment Bond Payment Schedule Interest Expense Cash Payment $ 100,000 100,000 100,000 Amortization of Premium 2. What amounts will be reported on the financial statements (statement of financial position, statement of earnings, and statement cash flows) for year 1, year 2, and year 3? (Round intermediate and final answers to the nearest whole dollar.) Year 1 Carrying Amount Year 2 Year 3

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Answer full question.
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