BlossomCompany issued $444,000of5%,7-year bonds on January 1, 2021. The bonds pay interest annually. an effective interest amortization
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Question:
BlossomCompany issued $444,000of5%,7-year bonds on January 1, 2021. The bonds pay interest annually.
an effective interest amortization table for this bond.
Assuming the market interest rate on January 1, 2021, was4%, calculate the bond's issue price.
Bond issue price: 470,649
BLOSSOMCOMPANY
Bond Premium Amortization Table
Effective-Interest MethodAnnual Interest Payments
5% Bonds Issued at market rate of4%
Date Interest Payment Interest Expense Premium Amortization Bond Amortized Cost
Jan. 1, 2021 $ $ $ $
Jan. 1, 2022
Jan, 1 2023
Jan 1 2024
Jan 1 2025
Jan 1 2026
Jan 1 2027
Jan 1 2028
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