Chapter $9HW.$

Straight$-$line Amortization

On January $1,$ Eagle, Inc., issued $$800,000$ of $9\%,20-$year bonds for $$878,948,$ yielding an effective interest rate of $8\%.$ Semiannual interest is payable on June $30$ and December $31$ each year. The firm uses the straight$-$line method to amortize the premium.

a$.$ Prepare an amortization schedule showing the necessary information for the first two interest periods. Round amounts to the nearest dollar.

$\backslash$table$[[,\backslash$table$[[$Interest$],[$Period$]],,\backslash$table$[[$Interest$],[$Paid$]],\backslash$table$[[$Straight$-$line$],[$Amortization$]],,\backslash$table$[[$Interest$],[$Expense$]],,\backslash$table$[[$Unamortized$],[$Premium$]],\backslash$table$[[$Book Value$],[$of Bonds$]]],[$Bond issue,,,,,,,s$,78,948vv$$$,878,948$

Determine the financial statement effect of the following B bond issuance on December $31$ see bond interest payment and discount amortization at June $30$ of the following year bond interest payment and discount amortization at December $31$ of the following year