E10-11 (Algo) Interpreting a Bond Amortization Schedule LO10-4 Santa Corporation issued a bond on January 1...

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E10-11 (Algo) Interpreting a Bond Amortization Schedule LO10-4 Santa Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond's coupon rate is 6 percent and interest is paid once a year on December 31. The bond matures in three years. The annual market rate of interest was 8 percent at the time the bond was sold. The following amortization schedule pertains to the bond issued: Interest Expense Amortization Cash Paid January 1, Year 1 December 31, Year 1 December 31, Year 2 $60 60 December 31, Year 3. 60 Required: 1. What was the bond's issue price? Balance $948 $76 $16 964 77 17 981 79 19 1,000 2. Did the bond sell at a discount or a premium? How much was the premium or discount? 3. What amount(s) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2? 4. Show how the following amounts were computed for Year 2: (a) $60, (b) $77, (c) $17, and (d) $981. Complete this question by entering your answers in the tabs below. < Prev 3 of 4 Next > 3. What amount(s) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2? 4. Show how the following amounts were computed for Year 2: (a) $60, (b) $77, (c) $17, and (d) $981. Complete this question by entering your answers in the tabs below. Required 1 to 3 Required 4 1. What was the bond's issue price? 2. Did the bond sell at a discount or a premium? How much was the premium or discount? 3. What amount(s) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2? 1. Bond issue price 3. Bonds payable year 1 3. Bonds payable year 2 Complete this question by entering your answers in the tabs below. Required 1 to Required 4 3 Show how the following amounts were computed for Year 2: (a) $60, (b) $77, (c) $17, and (d) $981. (Enter percentages in decimals. Enter all amounts as positive values.) (a) (b) (c) (d) $ 60 $ 77 (rounded) $ 17 $ 981 E10-11 (Algo) Interpreting a Bond Amortization Schedule LO10-4 Santa Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond's coupon rate is 6 percent and interest is paid once a year on December 31. The bond matures in three years. The annual market rate of interest was 8 percent at the time the bond was sold. The following amortization schedule pertains to the bond issued: Interest Expense Amortization Cash Paid January 1, Year 1 December 31, Year 1 December 31, Year 2 $60 60 December 31, Year 3. 60 Required: 1. What was the bond's issue price? Balance $948 $76 $16 964 77 17 981 79 19 1,000 2. Did the bond sell at a discount or a premium? How much was the premium or discount? 3. What amount(s) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2? 4. Show how the following amounts were computed for Year 2: (a) $60, (b) $77, (c) $17, and (d) $981. Complete this question by entering your answers in the tabs below. < Prev 3 of 4 Next > 3. What amount(s) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2? 4. Show how the following amounts were computed for Year 2: (a) $60, (b) $77, (c) $17, and (d) $981. Complete this question by entering your answers in the tabs below. Required 1 to 3 Required 4 1. What was the bond's issue price? 2. Did the bond sell at a discount or a premium? How much was the premium or discount? 3. What amount(s) should be shown on the balance sheet for bonds payable at the end of Year 1 and Year 2? 1. Bond issue price 3. Bonds payable year 1 3. Bonds payable year 2 Complete this question by entering your answers in the tabs below. Required 1 to Required 4 3 Show how the following amounts were computed for Year 2: (a) $60, (b) $77, (c) $17, and (d) $981. (Enter percentages in decimals. Enter all amounts as positive values.) (a) (b) (c) (d) $ 60 $ 77 (rounded) $ 17 $ 981