Question
Blossom Company issued $608,000, 7%, 10-year bonds on January 1, 2022, for $652,746. This price resulted in an effective-interest rate of 6% on the bonds.
Blossom Company issued $608,000, 7%, 10-year bonds on January 1, 2022, for $652,746. This price resulted in an effective-interest rate of 6% on the bonds. Interest is payable annually on January 1. Blossom uses the effective-interest method to amortize bond premium or discount.
Prepare the schedule using effective-interest method to amortize bond premium or discount of Blossom. (Round answers to 0 decimal places, e.g. 5,275.)
| Interest Periods | Interest to Be Paid | Interest Expense to Be Recorded | Premium Amortization | Unamortized Premium | Bond Carrying Value | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Issue date | ||||||||||
| 1 | ||||||||||
| 2 |
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Auditing An International Approach
Authors: Wally J. Smieliauskas, Kathryn Bewley
7th edition
1259259870, 1259087468, 70968292, 978-1259087462
