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Cash Payment Period (Credit) Completing a Bond Amortization Table (Effective Interest Rate Method) MacBride Enterprises sold $100,000 of bonds on January 1, 2024. A
Cash Payment Period (Credit) Completing a Bond Amortization Table (Effective Interest Rate Method) MacBride Enterprises sold $100,000 of bonds on January 1, 2024. A portion of the amortization table appears below. Interest Expense (Debit) Premium on Bonds Payable (Debit) Premium on Bonds Payable Balance Carrying Value At issue $3,585 $103,585 6/30/24 $3,000 $2,590 $410 3,175 103,175 12/31/24 3,000 2,579 421 2,754 102,754 6/30/25 3,000 2,569 431 2,323 102,323 12/31/25 7 Required: 1. Indicate the stated annual interest rate on these bonds, 2. Calculate the effective annual interest rate on these bonds. Round your answer to one decimal place. % 3. Determine the interest expense and premium amortization for the interest period ending December 31, 2025. If required, round your answers to the nearest whole dollar. Interest Expense Premium on Bonds Payable (Debit) Cash Payment Premium on Bonds Period (Credit) (Debit) Payable Balance At issue $3,585 Carrying Value $103,585 6/30/24 $3,000 $2,590 $410 3,175 103,175 12/31/24 3,000 2,579 421 2,754 102,754 6/30/25 3,000 2,569 431 2,323 102,323 12/31/25 4. Determine when the bonds will mature.
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