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K Colwood General Stores Inc. is authorized to issue $510,000 of 8.4%, 10-year bonds. On December 31, 2020, when the market interest rate is
K Colwood General Stores Inc. is authorized to issue $510,000 of 8.4%, 10-year bonds. On December 31, 2020, when the market interest rate is 9.4%, the company issues $408,000 of the bonds and receives cash of $380,113. Colwood General amortizes bonds by the effective-interest method. The semi-annual interest dates are January 31 and July 31 Requirements 1. Prepare a bond amortization table for the first four semi-annual interest periods. 2. Record issuance of the bonds on December 31, 2020, and the semi-annual interest payments on January 31, 2021, and July 31, 2021. Requirement. Prepare a amata for the mist four semi-annual merest perous (Round ure amounts to the nearest dollar.) Colwood General Stores Inc. Amortization Table A B C D E Semi-Annual Interest Date Interest Payment (4.2% of Face Value) Interest Expense (4.7% of Preceding Bond Carrying Amount) Incorre Discount Amortization (B-A) Bond Carrying Discount Account Balance (D-C) Amount ($408,000-D) Dec. 31, 2020 Jan. 31, 2021 July 31, 2021 Jan. 31, 2022 July 31, 2022 Activate V
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