On January 1, 2020, Peacock Products borrowed $447,000 by issuing 3-year, 8% bonds with a face amount

Question:

On January 1, 2020, Peacock Products borrowed $447,000 by issuing 3-year, 8% bonds with a face amount of $400,000. Interest is payable annually on December 31.

Required:

Prepare an amortization table using the following column headings.

Period

Cash Payment (Credit)

Interest Expense (Debit)

Premium on Bonds Payable (Debit)

Premium on Bonds Payable Balance

Carrying Value

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Cornerstones of Financial Accounting

ISBN: 978-1337690898

4th edition

Authors: Jay Rich, Jeff Jones

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Question Posted: Dec 11, 2017 08:50 AM

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On January 1, 2020, Peacock Products borrowed $447,000 by issuing 3-year, 8% bonds with a face amount

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Premium on Bonds Payable Debit Premium on Bonds Payabl...View the full answer

Cornerstones of Financial Accounting

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