The following amortization schedule is related to a bond issuance on January 1, 2020. Amortization Schedule Bond Cash Effective Amortization carrying Interest Interest amount value 01/01/20 $41,066 07/01/20 $1,600 $1,437 $163 40,903 01/01/21 1,600 1,432 168 40,735 07/01/21 1,600 1,426 174 40,560 01/01/22 1,600 1,420 180 40,380 07/01/22 1,600 1,413 187 40,193 01/01/23 1,600 1,407 193 40,000 $9,600 $8,534 $1,066 The amount of interest paid in 2020 is $3,200. $1,600. O $2,869. $1,437.
The following amortization schedule is related to a bond issuance on January 1, 2020. Amortization Schedule Bond Cash Effective Amortization carrying Interest Interest amount value 01/01/20 $41,066 07/01/20 $1,600 $1,437 $163 40,903 01/01/21 1,600 1,432 168 40,735 07/01/21 1,600 1,426 174 40,560 01/01/22 1,600 1,420 180 40,380 07/01/22 1,600 1,413 187 40,193 01/01/23 1,600 1,407 193 40,000 $9,600 $8,534 $1,066 The amount of interest paid in 2020 is $3,200. $1,600. O $2,869. $1,437.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Gadubhai
Transcribed Image Text:The following amortization schedule is related to a bond issuance on
January 1, 2020.
Amortization Schedule
Bond
Cash
Effective
Amortization
carrying
Interest
Interest
amount
value
01/01/20
$41,066
07/01/20
$1,600
$1,437
$163
40,903
01/01/21
1,600
1,432
168
40,735
07/01/21
1,600
1,426
174
40,560
01/01/22
1,600
1,420
180
40,380
07/01/22
1,600
1,413
187
40,193
01/01/23
1,600
1,407
193
40,000
$9,600
$8,534
$1,066
The amount of interest paid in 2020 is
$3,200.
$1,600.
O $2,869.
$1,437.
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