Bonds Issued at a Discount (Effective Interest)

1. Sicily Corporation issued $1,050,000 in 5% bonds (payable on December 31, 2032) on December 31, 2022, for $955,500. Interest is paid on June 30 and December 31. The market rate of interest is 7%.

   Required:

   Prepare the amortization table through December 31, 2024, using the effective interest rate method. If required, round your answers to the nearest dollar.

   Sicily Corporation
   Amortization Table
   Period	Cash Payment (Credit)	Interest Expense (Debit)	Discount on Bonds Payable (Credit)	Discount on Bonds Payable Balance (Debit)	Bond Payable Carrying Value (Credit)
   At issue	NA	NA	NA	$fill in the blank 1	$fill in the blank 2
   06/30/23	fill in the blank 3	fill in the blank 4	fill in the blank 5	fill in the blank 6	fill in the blank 7
   12/31/23	fill in the blank 8	fill in the blank 9	fill in the blank 10	fill in the blank 11	fill in the blank 12
   06/30/24	fill in the blank 13	fill in the blank 14	fill in the blank 15	fill in the blank 16	fill in the blank 17
   12/31/24	fill in the blank 18	fill in the blank 19	fill in the blank 20	fill in the blank 21	fill in the blank 22

Answer rating: 100% (QA)

Period At issue 063023 16000 123123 16000 063024 16000 ... View the full answer