A partial bond amortization schedule for $2-million, 5-year bonds is presented below: a. Fill in the missing
Question:
A partial bond amortization schedule for $2-million, 5-year bonds is presented below:
a. Fill in the missing words or amounts for items [1] through [6].
b. What is the bonds’ face value?
c. What is the bonds’ contractual interest rate? The market interest rate?
d. Prepare the journal entries for the first two interest payments.
Semi-Annual Interest Period Issue Date Apr. 30 Oct. 31 Interest [2] $40,000 40,000 Interest [3] $[4] 48,007 [1] Amortization $7,812 [5] Carrying Amount of Bonds $1,912,479 1,920,291 [6]
Step by Step Answer:
a 1Discount 2 Payment 3 Expense 4 Interest expense 47812 40000 7812 5 Discount amortization 800...View the full answer
Accounting Principles Volume 2
ISBN: 9781119786634
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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