The following partial amortization schedule is available for Crane Company who sold $1200000, 5-year, 10% bonds on January 1, 2020 for $1248000 and uses annual straight-line amortization. BOND AMORTIZATION SCHEDULE Interest Periods Interest to be paid Interest expense Premium Amortization Unamortized Premium Bond Carrying Value January 1, 2020 $48000 $1248000 January 1, 2021 (i) (ii) (iii) (iv) (v) Which of the following amounts should be shown in cell (v)? $1238400 $1243200 $1252800 $1257600
The following partial amortization schedule is available for Crane Company who sold $1200000, 5-year, 10% bonds on January 1, 2020 for $1248000 and uses annual straight-line amortization. BOND AMORTIZATION SCHEDULE Interest Periods Interest to be paid Interest expense Premium Amortization Unamortized Premium Bond Carrying Value January 1, 2020 $48000 $1248000 January 1, 2021 (i) (ii) (iii) (iv) (v) Which of the following amounts should be shown in cell (v)? $1238400 $1243200 $1252800 $1257600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following partial amortization schedule is available for Crane Company who sold $1200000, 5-year, 10% bonds on January 1, 2020 for $1248000 and uses annual straight-line amortization.
BOND AMORTIZATION SCHEDULE | |||||
Interest Periods
|
Interest
to be paid |
Interest
expense |
Premium
Amortization |
Unamortized
Premium |
Bond Carrying
Value |
---|---|---|---|---|---|
January 1, 2020
|
$48000 | $1248000 | |||
January 1, 2021
|
(i) | (ii) | (iii) | (iv) | (v) |
Which of the following amounts should be shown in cell (v)?
$1238400
$1243200
$1252800
$1257600
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