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Bonds payable (15 points) 10. On January 1, 2020, Entity I issued $1,000,000 of bonds at 98 with a five-year term. The interest rate is
Bonds payable (15 points) 10. On January 1, 2020, Entity I issued $1,000,000 of bonds at 98 with a five-year term. The interest rate is 8% and interest is payable annually on December 31. Entity straight line amortization on bond discount or premium. Here is a schedule. uses partial amortization BOND AMORTIZATION SCHEDULE Bond Interest Periods Interest Interest Discount Unamortized January 1 December 31 Carrying Value paid expense Amortization Discount $20,000$980,000 2020 (ui) (iv) 2020 Instructions: Complete the schedule. You may show your work below. You may find it helpful to complete the journal entry for the December 31, 2020 payment of interest and a partial balance sheet showing the bonds thereafter before answering the questions. We will grade the answers placed in the boxes above. What is the interest paid (box (0)? lb000 What is the amount of discount amortization (box ii)? What is the amount of interest expense (box ii)? 005 What is the amount of unamortized discount after the first interest payment (box iv)? What is the bond carrying value after the first interest payment (box v)
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