Accounting: Bond calculations. Please explain how to do these calculations. Shuttle Company issued $950,000, three-year, 5 percent
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Accounting: Bond calculations. Please explain how to do these calculations.
Shuttle Company issued $950,000, three-year, 5 percent bonds on January 1, year 1. The bond interest is paid each December 31, the end of the company's fiscal year. The bond was sold to yield 4 percent. Use Table 9C.1, Table 9C.2. (Round time value factor to 4 decimal places.) Required: 1. Complete a bond payment schedule. Use the effective-interest amortization method. (Make sure that the unamortized discount/premium equals to 'O' and the Net Liability equals to face value of the bond in the last period. Interest expense in the last period should be calculated as Cash Interest (+) discount /(-) premium amortized. Round intermediate and final answers to the nearest whole dollar.) Bond Payment Schedule Cash Payment Interest Amortization Expense of Premium Date Carrying Amount $ 1/1/year 1 12/31/year 1 12/31/year 2 12/31/year 3 47,500 47,500 47,500
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Stats Data And Models
ISBN: 662
4th Edition
Authors: Richard D. De Veaux, Paul D. Velleman, David E. Bock
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