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Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $1,050,000 in 5% bonds (payable on December 31, 2032) on December 31, 2022, for $955,500.
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Bonds Issued at a Discount (Effective Interest)
Sicily Corporation issued $1,050,000 in 5% bonds (payable on December 31, 2032) on December 31, 2022, for $955,500. Interest is paid on June 30 and December 31. The market rate of interest is 7%.
Required:
Prepare the amortization table through December 31, 2024, using the effective interest rate method. If required, round your answers to the nearest dollar.
Sicily Corporation Amortization Table Period Cash Payment (Credit) Interest Expense (Debit) Discount on Bonds Payable (Credit) Discount on Bonds Payable Balance (Debit) Bond Payable Carrying Value (Credit) At issue NA NA NA $fill in the blank 1 $fill in the blank 2 06/30/23 fill in the blank 3 fill in the blank 4 fill in the blank 5 fill in the blank 6 fill in the blank 7 12/31/23 fill in the blank 8 fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the blank 12 06/30/24 fill in the blank 13 fill in the blank 14 fill in the blank 15 fill in the blank 16 fill in the blank 17 12/31/24 fill in the blank 18 fill in the blank 19 fill in the blank 20 fill in the blank 21 fill in the blank 22
Bonds Issued at a Discount (Effective Interest)
Sicily Corporation issued $1,050,000 in 5% bonds (payable on December 31, 2032) on December 31, 2022, for $955,500. Interest is paid on June 30 and December 31. The market rate of interest is 7%.
Required:
Prepare the amortization table through December 31, 2024, using the effective interest rate method. If required, round your answers to the nearest dollar.
| Sicily Corporation | |||||
| Amortization Table | |||||
| Period | Cash Payment (Credit) | Interest Expense (Debit) | Discount on Bonds Payable (Credit) | Discount on Bonds Payable Balance (Debit) | Bond Payable Carrying Value (Credit) |
| At issue | NA | NA | NA | $fill in the blank 1 | $fill in the blank 2 |
| 06/30/23 | fill in the blank 3 | fill in the blank 4 | fill in the blank 5 | fill in the blank 6 | fill in the blank 7 |
| 12/31/23 | fill in the blank 8 | fill in the blank 9 | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 |
| 06/30/24 | fill in the blank 13 | fill in the blank 14 | fill in the blank 15 | fill in the blank 16 | fill in the blank 17 |
| 12/31/24 | fill in the blank 18 | fill in the blank 19 | fill in the blank 20 | fill in the blank 21 | fill in the blank 22 |
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