Question
A company issued 10%, 5-year bonds with a par value of $2,000,000 on January 1, 2014. Interest is to be paid semiannually each June 30
A company issued 10%, 5-year bonds with a par value of $2,000,000 on January 1, 2014. Interest is to be paid semiannually each June 30 and December 31. The bonds were sold at $2,162,218 based on an annual market rate of 8%. The company uses the effective interest method of amortization. (1) Complete the following amortization table for the semiannual payment periods using the format shown below (round to the nearest dollar).
| Semiannual Interest Period | Interest Paid | Interest Expense | Premium Amortization | Unamortized Premium | Carrying Value |
| 01/01/2014 | N/A | N/A | N/A | $162,218 |
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| 06/30/2014 |
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| 12/31/2014 |
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| 06/30/2015 |
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Cornerstones Of Financial And Managerial Accounting Fnec 220
Authors: Jay S. Rich, Jeff Jones, Dan L. Heitger, Maryanne M. Mowen, Don R. Hansen
2nd Edition
1133275583, 978-1133275589
