Layout Formulas Data D n the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected A B C D F G 1 E Before you begin, print out all the pages in this workbook. H T J K L M N 2 3 4 Term in years: 5 6 Otter Products Inc. issued bonds on January 1, 2019. Interest is to be paid semi- annually. Other information is as follows: Face value of bonds issued: Issue price: 7 Specified interest rate each payment period: 2 $200,000 $206,000 6% 8 Required: 9 1 Calculate: 10 a. The amount of interest paid in cash every payment period. 11 12 3 14 15 16 17 b. The amount of amortization to be recorded at each interest payment date (use the straight-line method). 2 Complete this amortization table by calculating interest expense, and beginning and ending bond carrying amounts at the end of each period over two years. A Amortization Table B D E (A+D) Beg bond Period carrying 20 Year 2019 ending amount Periodic interest expense Actual cash interest Periodic paid discount (prem.) amort Ending bond carrying amount Jun. 30 Dec 31 2020 Jun 30 Dec 31 2021 Jun 30 Dec 31 3 Calculate the actual interest rate under the straight-line method of amortization for each six-month period. Round all percentage calculations to two decimal placed. Use the following format: A B Six Six month Bond month period carrying interest % ending amount Year expense (B/A) 30 34 36 2019 2020 40 28528338523 85883885 8 8 8 * * * * 26 27 Jun. 30 Dec. 31 Jun. 30 Dec. 31 2021 Jun. 30 Dec. 31 A Prepare the journal entry for December 31, 2019