Clipboard Font Alignment Number B15 o P c D E F G H K L M N 1 Before you begin, print out all the pages in this workbook. 2 Otter Products Inc. issued bonds on January 1, 2019. Interest is to be paid semi- 3 annually. Other information is as follows: 4 Term in years: 2 5 Face value of bonds issued: $200,000 6 Issue price: $206,000 7 Specified interest rate each payment period: 6% 8 Required: 9 1 Calculate: 10 a. The amount of interest paid in cash every payment period. 11 b. The amount of amortization to be recorded at each interest payment date (use the 12 straight-line method). 13 2 Complete this amortization table by calculating interest expense, and beginning and 14 ending bond carrying amounts at the end of each period over two years. 15 16 Amortization Table 17 A B C D E (A + D) Beg Actual Periodic bond Periodic cash discount Ending bond Period carrying interest interest (prem.) carrying Year ending amount expense paid amort. 20 2019 Jun. 30 Dec. 31 22 2020 Jun. 30 Required Copyright 18 19 amount 21 o P D E F G H L M N Beg Actual Periodic bond Periodic cash discount Ending bond Period carrying interest interest (prem.) carrying 19 Year ending amount expense paid amort. amount 20 2019 Jun 30 21 Dec. 31 22 2020 Jun 30 23 Dec. 31 24 2021 If 30 25 Dec, 31 26 3 Calculate the actual interest rate under the straight-line method of amortization for 27 each six- month period. Round all percentage calculations to two decimal placed. Use 28 the following format: 29 A 30 Six month Bond Six 31 period carrying month interest 32 amount % Year expense 33 (B/A) 34 2019 Jun 30 35 Dec. 31 2020 Jun 30 37 Dec. 31 31 2021 Jun 30 39 Dec. 31 Required Copyright ending Type here to search o 21 Dec. 31 22 2020 Jun. 30 23 Dec. 31 24 2021 Jun 30 25 Dec 31 26 3 Calculate the actual interest rate under the straight-line method of amortization for 27 each six-month period. Round all percentage calculations to two decimal placed. Use 28 the following format: 29 A 8 Six month Six Bond 30 month 31 period carrying %6 32 interest ending Year amount expense (B/A) 33 34 2019 Jun. 30 35 Dec. 31 36 2020 Jun. 30 37 Dec. 31 3B 2021 Jun. 30 39 Dec. 31 40 41 4 Prepare the journal entry for December 31, 2019 42 43 44 Required Copyright Type here to search O