Question

On January 1, 2016, Parker Company issued bonds with a face value of $80,000, a stated rate of interest of 8 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 9 percent at the time the bonds were issued. The bonds sold for $76,888. Parker used the effective interest rate method to amortize the bond discount.
Required
a. Prepare an amortization table as shown below:
b. What item(s) in the table would appear on the 2019 balance sheet?
c. What item(s) in the table would appear on the 2019 income statement?
d. What item(s) in the table would appear on the 2019 statement of cash flows?


$1.99
Sales28
Views251
Comments0
  • CreatedApril 20, 2015
  • Files Included
Post your question
5000