Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

Calculations Marketing Inc. issued 10.5% bonds with a par value of $410,000 and a five-year life on January 1, 2020, for $417,914. The bonds pay

image text in transcribed

image text in transcribed

Calculations Marketing Inc. issued 10.5% bonds with a par value of $410,000 and a five-year life on January 1, 2020, for $417,914. The bonds pay interest on June 30 and December 31. The market interest rate was 10% on the original issue date. Use TABLE 14A.1 and TABLE 14A.2. (Use appropriate factor(s) from the tables provided.) 2. Prepare an amortization table using the effective interest method. (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.) Answer is not complete. Carrying Value Cash Period Premium Interest Interest Unamortized Paid Expense Amort. premium $ 0$ 0$ 0$ 0 % 21,525 20,896 629 21,525 20,864 661 21,525 20,831 694 21,525 20,797 728 Period Ending Jan. 1/20 June 30/20 Dec. 31/20 June 30/21 Dec. 31/21 June 30/22 Dec 31/22 June 30/23 Dec. 31/23 June 30/24 Dec 31/24 Totals 21,525 20,760 765 21,525 20,722 803 21,525 20,682 843 21,525 20,640 885 21,525 20,595 930 20,549 976 (976) (976) 21,525 $ 215,250 $ 207,336 $ 7,914

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Changing Face Of American BankingDeregulation, Reregulation, And The Global Financial System

Authors: Ranajoy Ray Chaudhuri

3rd Edition

1137365811, 9781137365811

More Books

Students explore these related Accounting questions