Amortization of Discount

Stacy Company issued five-year, 7% bonds with a face value of $13,000 on January 1, 2016. Interest is paid annually on December 31. The market rate of interest on this date is 9%, and Stacy Company receives proceeds of $11,989 on the bond issuance.

Use the appropriate present value table:

PV of $1 and PV of Annuity of $1

Required:

Question Content Area

1. Prepare a five-year table to amortize the discount using the effective interest method.

If required, round all calculations to the nearest dollar. Enter all amounts as positive numbers.

Lien the approsiste present usiue tswie: PV or $1 snd PV of Anmity of $1 Required: 1. Prepser a fiveyes-table to smarton the discourt using the effecthe interest methoc 2. Wha: is the botal interest eqperes over the life of the banda? cash inte est pagmen? discount amortization? Detemine the tablance sheet presontatian of the Lunds for Docembir 31, 2018