MacBride Enterprises sold $200,000 of bonds on January 1, 2020. A portion of the amortization table appears
Question:
Required:
1. Indicate the stated annual interest rate on these bonds.
2. Calculate the effective annual interest rate on these bonds.
3. Determine the interest expense and premium amortization for the interest period ending December 31, 2021.
4. Determine when the bonds will mature.
Transcribed Image Text:
Cash Payment Interest Expense (Debit) Premium on Bonds Premium on Bonds Payable Balance S6,457 5,922 5,365 4,785 Carrying Payable (Debit) Period (Credit) Value $206,457 205,922 205,365 204,785 At issue $8,465 8,443 8,420 S535 557 580 ? 06/30/20 $9,000 12/3 1/20 06/30/21 12/3 1/21 9,000
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