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Imported Autoparts Inc. issued $170,000 of 4%, 10-year bonds at a price of 8A on January 31, 2020. The market interest rate at the date
Imported Autoparts Inc. issued $170,000 of 4%, 10-year bonds at a price of 8A on January 31, 2020. The market interest rate at the date of issuance was 8%, and the standard bonds pay interest semi-annually. 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. 2. Record Imported's issuance of the bonds on January 31, 2020, and payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2020. Explanations are not required. 1. Prepare an effective-Interest amortization table for the bonds through the first three interest payments. (Round your answers to the nearest whole dollar) Imported Autoparts Amortization Table B D Interest Payment Interest Expense (3% of Bond Discount Bond Discount Bond Carrying Semi-annual (2% of Maturity Preceding Bond Carrying Amortization (B Account Balance Amount Interest Date Value) Amount) (Preceding D.c) ($170,000 -D) -A) Jan. 31, 2020 July 31, 2020 Jan. 31, 2021 3400 3400 July 31, 2021 3400 2. Record Imported's issuance of the bonds on January 31, 2020, and payment of the first somi-annual interest amount and amortization of the bonds on July 31. 2020. (Record debits first, then credits. Explanations are not required.) Start by recording the issuance of bonds on January 31, 2020 Imported Autoparts Inc. issued $170,000 of 4%, 10-year bonds at a price of 84 on January 31, 2020. The market interest rate at the date of issuance was 6%, and the standard bonds pay interest semi-annually 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. 2. Record Imported's issuance of the bonds on January 31, 2020, and payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2020. Explanations are not required. 2. Record Imported's issuance of the bonds on January 31, 2020, and payment of the first semiannual interest amount and amortization of the bonds on July 31 2020. (Record debits first, then credits. Explanations are not required.) Start by recording the issuance of bonds on January 31, 2020. Date Accounts Debit Credit Jan 31, 2020 Now, record the payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2020 Date Accounts Debit Credit July 31, 2020
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