Otter Products Inc. issued bonds on January 1, 2019. Interest is to be paid semi-annually. Other...

  

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Otter Products Inc. issued bonds on January 1, 2019. Interest is to be paid semi-annually. Other information is as follows: Term in years: Face value of bonds issued: S200,000 Issue price: Specified interest rate each payment period: S206,000 6% Required: 1 Calculate: a. The amount of interest paid in cash every payment period. b. The amount of amortization to be recorded at each interest payment date (use the straight-line method). 2 Complete this amortization table by calculating interest expense, and beginning and ending bond carrying amounts at the end of cach period over three years. Amortization Table B D. (A + D) Actual Periodie Beg. bond carrying Ending bond carrying Periodic Period cash discount Year interest ending interest (prem.) атоunt еxpense атоunt paid атort. 2019 Jun. 30 Dec. 31 2020 Jun. 30 Dec. 31 2021 Jun. 30 Dec. 31 3 Calculate the actual interest rate under the straight-line method of amortization for each six-month period. Round all percentage calculations to two decimal placed. Use the following format: B Bond Six-month Six month carrying interest period ending атоunt еxpense Year (B/A) 2019 Jun. 30 Dec. 31 2020 Jun. 30 Dec. 31 Jun. 30 2021 Dec. 31 4 Prepare the journal entry for December 31, 2019. Otter Products Inc. issued bonds on January 1, 2019. Interest is to be paid semi-annually. Other information is as follows: Term in years: Face value of bonds issued: S200,000 Issue price: Specified interest rate each payment period: S206,000 6% Required: 1 Calculate: a. The amount of interest paid in cash every payment period. b. The amount of amortization to be recorded at each interest payment date (use the straight-line method). 2 Complete this amortization table by calculating interest expense, and beginning and ending bond carrying amounts at the end of cach period over three years. Amortization Table B D. (A + D) Actual Periodie Beg. bond carrying Ending bond carrying Periodic Period cash discount Year interest ending interest (prem.) атоunt еxpense атоunt paid атort. 2019 Jun. 30 Dec. 31 2020 Jun. 30 Dec. 31 2021 Jun. 30 Dec. 31 3 Calculate the actual interest rate under the straight-line method of amortization for each six-month period. Round all percentage calculations to two decimal placed. Use the following format: B Bond Six-month Six month carrying interest period ending атоunt еxpense Year (B/A) 2019 Jun. 30 Dec. 31 2020 Jun. 30 Dec. 31 Jun. 30 2021 Dec. 31 4 Prepare the journal entry for December 31, 2019.

Answer rating: 100% (QA)

1 a 2000006 12000 1 b 1000 2 Period Ending Beg bond carrying amount Periodic interest expense Act... View the full answer