Exercise $10-20$A $($Algo$)$ Effective interest amortization of a bond discount LO $10-6$

On January $1,$ Year $1,$ Parker Company issued bonds with a face value of $$80,000,$ a stated rate of interest of $11$ percent, and a five$-$year term to maturity. Interest is payable in cash on December $31$ of each year. The effective rate of interest was $13$ percent at the time the bonds were issued. The bonds sold for $$74,372.$ Parker used the effective interest rate method to amortize the bond discount.

Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.

Required

Prepare an amortization table.

What is the carrying value that would appear on the Year $4$ balance sheet?

What is the interest expense that would appear on the Year $4$ income statement?

What is the amount of cash outflow for interest that would appear in the operating activities section of the Year $4$ statement of cash flows?Exercise $10-20$A $($Algo$)$ Effective interest amortization of a bond discount LO $10-6$

On January $1,$ Year $1,$ Parker Company issued bonds with a face value of $$80,000,$ a stated rate of interest of $11$ percent, and a five$-$year

term to maturity. Interest is payable in cash on December $31$ of each year. The effective rate of interest was $13$ percent at the time the

bonds were issued. The bonds sold for $$74,372.$ Parker used the effective interest rate method to amortize the bond discount.

Note: Round your intermediate calculations and final answers to the nearest whole dollar amount.

Required

a$.$ Prepare an amortization table.

b$.$ What is the carrying value that would appear on the Year $4$ balance sheet?

c$.$ What is the interest expense that would appear on the Year $4$ income statement?

d$.$ What is the amount of cash outflow for interest that would appear in the operating activities section of the Year $4$ statement of cash

flows?

b$.$ Carrying value

c$.$ Interest expense

d$.$ Cash outflow for interest