Question
Chilliwack Candies issued $370,000 of 12%, five-year bonds on January 1, 2020, when the market interest rate was 16%. The company pays interest annually
Chilliwack Candies issued $370,000 of 12%, five-year bonds on January 1, 2020, when the market interest rate was 16%. The company pays interest annually at year-end. The issue price of the bonds was $321,540. Requirement Create a spreadsheet model to prepare a schedule to amortize the bonds. Use the effective-interest method of amortization. Round to the nearest dollar. Requirement. Create a spreadsheet model to prepare a schedule to amortize the bonds. Use the effective-interest method of amortization. (Round your final answer to the nearest dollar. For amounts with a zero balance, enter a 10 where appropriate.) A B C D E Date Interest Payment Interest Expense (16% of Discount (12% of Maturity Preceding Bond Carrying Amortization Value) Amount) (C-B) F Bond Carrying Discount Balance (Preceding E-D) Amount ($370,000 - E) 1-1-2020 12-31-2020 $ 44,400 12-31-2021 44,400 12-31-2022 44,400 12-31-2023 44,400 12-31-2024 44,400
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