Identify and analyze the effect of the payment of interest and the amortization of premium on December 31,2019 (the third year) - how does this effect the accounting equation

Determine the balance sheet presentation of the bonds on December 31,2019

Amortization of Premium Stacy Company issued five-year, 10% bonds with a face value of $10,000 on January 1, 2017, Interest is paid annually on December 31, The market rate of interest of January 1, 2017, is 8% and the proceeds from the bond issuance equal $10,799. Required: 1. Prepare a five-year table to amortize the premium using the effective interest method. Enter all amounts as positive numbers. If required, round all calculations and final answers to the nearest dollar Note: Due to rounding you will have to adjust the interest expense for 12/31/21 so the carrying value equals $10,000. Stacy Company Premium Amortization Effective Interest Method of Amortization Date Cash Interest 10% Interest Expense 8% Premium Amortized Carrying Value 1/01/17 10,799 V 12/31/17 s 1,000) v s 86392) v s 136.08 v -10,662.92 V 12/01/18 1,00053031469710515.95 12/31/19 1,000 12/31/20 1,000 12/31/21 1,000 Totals 5,000 200 v D 8 146.97 v 10,515.95 10,357.23 10,185.81 10,000 841.28 828.58 158.72 171.42 814186 4,201 799 Check My Work Previous Next Email instructor ave and Exit Submit Assignment for Grading