EB1. LO 13.1 Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment. Year Payment Interest 1 Beginning To Ending Balance Principal Balance $50,000.00 $11,548.74 $2,500.00 $9,048.74 $40,951.20 2 3 4 5 40,951.26 11,548.74 2,047.56 9,501.18 31,450.08 11,548.74 11,548.74 11,548.74 2 EB5. LO 13.2 Haiku Inc. issued $600,000 of 10-year bonds with a stated rate of 11% when the market rate was 12%. The bonds pay interest semi-annually. Prepare the first three years of an 3 amortization schedule. Assume that the bonds were issued for $565,710. 4 5 10-year $600,000 11% Cash Interest 6 Payment Mkt 12% Interest on Carrying Value Semi-annually Amortization of Discount Carrying Value 7 Jan. 1, Year 1 565,710 8 June 30, Year 1 33,000 33,943 943 566,653 9 Dec. 31, Year 1 33,000 33,999 999 567,652 10 June 30, Year 2 33,000 11 Dec. 31, Year 2 33,000 12 June 30, Year 3 33,000 13 Dec. 31, Year 3 33,000 14 15 16 56 inetrest-600000 x 11% x .5 17 EB6. LO 13.2 Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are 3-year bonds with interest to be paid annually. Prepare a table to amortize the premium of the bonds. Assume that the bonds were issued for $421,844. 3-year, annual Market 5% 7% Cash Interest $400,000 Interest on Amortization Carrying Carrying of Premium Value Payment Value Jan. 1, 421,844 7 Year 1 Dec. 31, 28,000 21,092.20 6,908 414,936 8 Year 1 Dec. 31, 28,000 9 Year 2 Dec. 31, + 28,000 10 Year 3 11 EB9. LO 13.3 Roo Incorporated issued 50 bonds with a face value of $1,000 and a stated rate of 6% when the market rate was 6%. What is the journal entry to record the sale of the bonds? B 4 5 Date Account 6 7 Debit Credit B 1 EB8. LO 13.3 Allante, Corporate issued 50 bonds with a face value of $1,000 and a stated rate of 4% and received $45,000. What is the journal entry to record the sale of the bonds? A 2 3 4 Date Account 5 1/1/2020 Cash 9 7 8 Discount on Bonds Payable Bonds payable Debit Credit 45000