2.a

2.LO 9.2: Effective-Interest Amortization On January 1, 2021, Beerbo issues $100,000 of bonds. The bonds have a stated rate (i.e. coupon rate) of 10%. The bonds mature on December 31, 2023. Complete the tasks for each scenario below. Use the present value tables below when necessary. Assume Beerbo has a December 31 fiscal year-end (FYE), uses the effective-interest method to amortize premiums and discounts, and has the following accounts in its ledger: - Bonds Payable - Cash - Discount on Bonds Payable Interest Expense - Premium on Bonds Payable PV $1 n = 3 4.5% 5.0% 5.5% 9.0% 10.0% 11.0% 0.8763 0.8638 0.8516 0.7721 0.7513 0.7311 0 4 1 8 1 9 0.7679 0.7462 0.7252 0.5962 0.5644 0.5346 0 2 5 7 7 4 n = 6 PVOA $1 n = 3 4.5% 5.0% 5.5% 9.0% 10.0% 11.0% 2.7489 2.7232 2.6979 2.5312 2.4868 2.4437 6 5 3 9 5 1 5.1578 5.0756 4.9955 4.4859 4.3552 4.2305 7 9 3 2 6 4 n= 6 2.a market rate