On January 1, 2016, a company issues 3-year bonds with a face value of $200,000 and...

 

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On January 1, 2016, a company issues 3-year bonds with a face value of $200,000 and a stated interest rate of 8%. Because the market interest rate is higher than the stated interest rate, the company receives $194,000 for the bond. Required: Fill in the table assuming the company uses the straight-line bond amortization. Period Cash Amortized Interest Bonds Ended Paid Discount Expense Payable 01/01/16 12/31/16 12/31/17 12/31/18 Discount on Bonds Payable Carrying Value On January 1, 2016, a company issues 3-year bonds with a face value of $200,000 and a stated interest rate of 8%. Because the market interest rate is higher than the stated interest rate, the company receives $194,000 for the bond. Required: Fill in the table assuming the company uses the straight-line bond amortization. Period Cash Amortized Interest Bonds Ended Paid Discount Expense Payable 01/01/16 12/31/16 12/31/17 12/31/18 Discount on Bonds Payable Carrying Value

Answer rating: 100% (QA)

1 2 B Period Ended B Cash Paid 2000008 16000 16000 16000 Answer Amortixed Interest Discoun... View the full answer