Question
Bonds Issued at a Premium (Effective Interest) Cookie Dough Corporation issued $550,000 in 6%, 10-year bonds (payable on December 31, 2030) on January 1, 2021,
Bonds Issued at a Premium (Effective Interest)
Cookie Dough Corporation issued $550,000 in 6%, 10-year bonds (payable on December 31, 2030) on January 1, 2021, for $599,500. Interest is paid on June 30 and December 31. The market rate of interest is 5%.
Required:
Prepare the amortization table through December 31, 2023, using the effective interest rate method. If an amount box does not require an entry, leave it blank and if the answer is zero, enter "0". If required, round your answers to the nearest whole dollar.
Cookie Dough Corporation | |||||
Amortization Table | |||||
Period | Cash Payment (Credit) | Interest Expense (Debit) | Premium on Bonds Payable (Debit) | Premium on Bonds Payable Balance | Carrying Value |
At issue | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 | $fill in the blank 4 | $fill in the blank 5 |
6/30/21 | fill in the blank 6 | fill in the blank 7 | fill in the blank 8 | fill in the blank 9 | fill in the blank 10 |
12/31/21 | fill in the blank 11 | fill in the blank 12 | fill in the blank 13 | fill in the blank 14 | fill in the blank 15 |
6/30/22 | fill in the blank 16 | fill in the blank 17 | fill in the blank 18 | fill in the blank 19 | fill in the blank 20 |
12/31/22 | fill in the blank 21 | fill in the blank 22 | fill in the blank 23 | fill in the blank 24 | fill in the blank 25 |
6/30/23 | fill in the blank 26 | fill in the blank 27 | fill in the blank 28 | fill in the blank 29 | fill in the blank 30 |
12/31/23 | fill in the blank 31 | fill in the blank 32 | fill in the blank 33 | fill in the blank 34 | fill in the blank 35 |
I need help with the formulas for the second through last column, I found for the first column.
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