Ch 10 Student Assign Ch 10 Bond amortization Up AutoSave Off File Home Insert Draw Page Layout Data Formulas Review View Help X Calibri 12 AA ce ab Wrap Text 9 Paste BIU A EEE Merge & Center Undo Clipboard 2 Font A B C D E P G H 23 Alignment K M N 1 Before you begin, print out all the pages in this workbook. 2 Otter Products Inc. issued bonds on January 1, 2019. Interest is to be paid semi- 3 annually. Other information is as follows: 4 5 6 Term in years: Face value of bonds issued: Issue price: 7 Specified interest rate each payment period: 8 Required: 9 1 Calculate: 10 a. The amount of interest paid in cash every payment period. 17 2 $200,000 $206,000 6% 12 b. The amount of amortization to be recorded at each interest payment date (use the straight-line method). 13 2 Complete this amortization table by calculating interest expense, and beginning and ending bond carrying amounts at the end of each period over two years. 14 15 16 17 Amortization Table A B D E 18 (A+D) Beg. bond Period 19 Year ending Periodic carrying interest amount expense Actual cash interest paid Periodic discount Ending bond (prem.) carrying amort. amount 20 2019 Jun. 30 21 Dec. 31 22 2020 Jun. 30 + 23 Dec. 31 24 2021 Jun. 30 25 Dec. 31 Required Copyright Ready Calculate Accessibility: Investigate Type here to search AutoSave Off H Ch 10 Student Assign Ch 10 File Home Insert Draw Page Layout Formulas Data Review View Help Paste X v Calibri 12 A A ab Wrap Text ==U BIU v A Merge & Center Undo Clipboard Font Z Alignment A D E F G H J K L M N 20 2019 Jun. 30 21 Dec. 31 22 2020 Jun. 30 23 Dec. 31 24 2021 Jun. 30 25 Dec. 31 26 3 Calculate the actual interest rate under the straight-line method of amortization for each six-month period. Round all percentage calculations to two decimal placed. Use the following format: 27 28 29 A B Six- Six month Bond 30 month period carrying 31 interest % ending amount 32 Year expense (B/A) 33 34 2019 Jun. 30 35 Dec. 31 36 2020 Jun. 30 37 Dec. 31 38 2021 Jun. 30 39 Dec. 31 40 41 4 Prepare the journal entry for December 31, 2019. 42 43 44 45 46 Required Ready Calculate Copyright Accessibility: Investigate Type here to search IT Ch 10 Student Assign Ch 10 Bond amortization US Edition at Aug 29 CORRECTED 8-2020 (3) Protected View Layout Formulas Data Review View Help the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing A B C D E F G H J K L M N 0 1 Before you begin, print out all the pages in this workbook. 2 3 Otter Products Inc. issued bonds on January 1, 2019. Interest is to be paid semi- annually. Other information is as follows: 4 5 6 7 Term in years: Face value of bonds issued: Required: Issue price: Specified interest rate each payment period: 8 9 1 Calculate: 10 a. The amount of interest paid in cash every payment period. 11 2 $200,000 $206,000 6% 12 b. The amount of amortization to be recorded at each interest payment date (use the straight-line method). 13 2 Complete this amortization table by calculating interest expense, and beginning and ending bond carrying amounts at the end of each period over two years. 14 15 16 17 18 Amortization Table A B C D E (A + D) Beg. bond Periodic Period carrying interest 19 Year ending amount expense Actual cash interest paid Periodic discount (prem.) amort. Ending bond carrying amount 20 2019 Jun. 30 21 Dec. 31 22 2020 Jun. 30 23 Dec. 31 24 2021 Jun. 30 25 Dec. 31 26 3 Calculate the actual interest rate under the straight-line method of amortization for each six-month period. Round all percentage calculations to two decimal placed. Use the following format: 27 28 Close 29 arch Required A B Copyright Ch 10 Student Assign Ch 10 Bond amortization US Edition at Aug 29 CORRECTED 8-2020 (3) Protected View e Layout Formulas Data Review View Help om the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. A B C D E F G H 22 2020 Jun. 30 23 Dec. 31 24 2021 Jun. 30 25 Dec. 31 Enable Editing J K L M N A Six month Bond 30 period carrying 31 ending amount 26 3 Calculate the actual interest rate under the straight-line method of amortization for each six-month period. Round all percentage calculations to two decimal placed. Use the following format: 27 28 29 ### B Six- month interest % 32 Year expense (B/A) 33 34 2019 Jun. 30 35 Dec. 31 36 2020 Jun. 30 37 Dec. 31 38 2021 Jun. 30 39 Dec. 31 40 41 4 Prepare the journal entry for December 31, 2019. 42 43 44 45. 46 47 48 49 50 51 Close Required Copyright arch