Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cole Inc. prepares the following effective interest amortization table for its bonds payable. Interest Payment Date Cash Payment Interest Decrease in Book Amount Expense

image

Cole Inc. prepares the following effective interest amortization table for its bonds payable. Interest Payment Date Cash Payment Interest Decrease in Book Amount Expense Discount Discount Value Dec 31, 2021 $840,000 $911,169 Dec 31, 2022 $840,000 $916,151 $71,169 $76,151 $835,982 $912,133 $13,087,867 $13,164,018 Dec 31, 2023 $840,000 $921,481 Dec 31, 2024 $840,000 $927,185 $81,481 $87,185 $667,316 $754,501 $13,245,499 $13,332,684 Dec 31, 2025 $840,000 $933,288 $93,288 $574,028 $13,425,972 Dec 31, 2026 $840,000 $939,818 $99,818 $474,210 $13,525,790 Dec 31, 2027 $840,000 $946,805 $106,805 $367,404 $13,632,596 Dec 31, 2028 $840,000 $954,282 $114,282 $253,123 $13,746,877 Dec 31, 2029 $840,000 $962,281 $122,281 $130,841 $13,869,159 Dec 31, 2030 $840,000 $970,841 $130,841 $0 $14,000,000 What is the bonds' FACE VALUE?

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

Intermediate accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson

7th edition

978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094

More Books

Students also viewed these Accounting questions