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36) Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity: Increase
36) Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity: Increase in Carrying Value Interest Carrying Value Date Cash Paid Expense 01/01/2021 S 194,758 195,548 S 7,790 06/30/2021S 7,000 S 790 822 855 7,822 7,855 7,889 7,925 7,961 12/31/2021 7,000 7,000 7,000 7,000 7,000 196,370 197,225 06/30/2022 889 12/31/2022 198,114 199,039 925 06/30/2023 12/31/2023 961 200,000 What is the annual stated interest rate on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) A) 790. D) 6% B) 3% C) 3.5% Learning Objective: 09-05 Record the issuance of bonds and related interest
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