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Berj Corporation issued bonds and received cash in full for the issue price. The bonds were dated and issued on January 1, 2013. The coupon

Berj Corporation issued bonds and received cash in full for the issue price. The bonds were dated and issued on January 1, 2013. The coupon rate was payable at the end of each year. The bonds mature at the end of four years. The following schedule has been partially completed (amounts in thousands):

Date Cash Paid Interest Expense Amortization Carrying Amount
January 1, 2013 $ 7,319
End of year 2013 $ 612 $ 586 $ 26 7,293
End of year 2014 612 ? ? 7,264
End of year 2015 612 ? ? ?
End of year 2016 612 ? ? 7,200
Required:
1.

Complete the amortization schedule.(Make sure that the unamortized discount/premium equals to '0' and the Net Liability equals to face value of the bond in the last period. Enter your answers in thousands of dollars. Round your intermediate calculationsand final answers to the nearest dollars number. Enter all amounts as positive values.)

2.

What was the maturity amount of the bonds?(Enter your answer in thousands of dollars.)

3.

How much cash was received at the date of issuance (sale) of the bonds?(Enter your answer in thousands of dollars.)

4.

What was the amount of discount or premium on the bond?(Enter your answer in thousands of dollars.)

5.

How much cash will be disbursed in total for the full life of the bond issue?(Enter your answer in thousands of dollars.)

6. What method of amortization is being used?
Effective-interest method
Straight-line method
Deferred interest method
7.

What is the coupon rate of interest?(Round your answer to 1 decimal place. i.e. 0.012 to be entered as 1.2.)

8.

What is the effective rate of interest?(Round your answer to 1 decimal place. i.e. 0.012 to be entered as 1.2.)

9.

What amount of interest expense should be reported on the statement of earnings each year?(2013, 2014, 2015, 2016)

10.

Show how the bonds should be reported on the statement of financial position at the end of each year.(Enter your answers in thousands of dollars.)

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