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can you explain the calculations please? thank you! E10-15 (Algo) (Supplement 10B) Recording the Effects of a Discount Bond Issue and First Interest Payment and
can you explain the calculations please? thank you!
E10-15 (Algo) (Supplement 10B) Recording the Effects of a Discount Bond Issue and First Interest Payment and Preparing a Discount Amortization Schedule (Effective-Interest Amortization) (LO 10-S2) [The following information applies to the questions displayed below.) On January 1, when the market interest rate was 10 percent, Seton Corporation completed a $210,000, 9 percent bond issue for $197,088. The bonds pay interest each December 31 and mature in 10 years. Assume Seton Corporation uses the effective-interest method to amortize the bond discount. E10-15 (Algo) Part 3 3. Prepare a bond discount amortization schedule for these bonds. (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) Ending Bond Liability Balances Changes During the Period Interest Discount Cash Paid Expense Amortized Period Ended Bonds Payable Discount on Bonds Payable Carrying Value 12,912 19,709 809 Start Year 1 End Year 2 End Year 3 End Year 4 End Year 5 End Year 6 End Year 7 End Year 8 End Year 9 End Year 10 End 18,900 18,900 18,900 18,900 18,900 18,000 18.900 18.900 18,900 18,900 210,000 210,000 210,000 210,000 210,000 210,000 210,000 210,000 210,000 210,000 210,000 197,088 210,000 210,000 210,000 210,000 210,000 210,000 210,000 210,000 210.000 210,000 Step by Step Solution
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