On January 1, 2020, Peacock Products borrowed $447,000 by issuing 3-year, 8% bonds with a face amount
Question:
On January 1, 2020, Peacock Products borrowed $447,000 by issuing 3-year, 8% bonds with a face amount of $400,000. Interest is payable annually on December 31.
Required:
Prepare an amortization table using the following column headings.
Period
Cash Payment (Credit)
Interest Expense (Debit)
Premium on Bonds Payable (Debit)
Premium on Bonds Payable Balance
Carrying Value
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