Question
On January 1, 2011, a company sells a 3-year bond with a face value of $200000 and a stated interest rate of 8%. Because the
On January 1, 2011, a company sells a 3-year bond with a face value of $200000 and a stated interest rate of 8%. Because the market interest rate is lower, the company receives $204,000 for the bond. Fill in the table below assuming the company uses the straight-line method of amortization. 190000 for the bond and used the straight-line method of amortization.
If you do not help both help me the second one.
Now Fill the table below assuming the company received only 190000 for the bond and used the straight-line method of amortization. Again a 3 year bond with a face value of $200000 and a stated interest rate of 8%
Period Ended D10111 (A) Cash Puid (B) Amortived Premium (C)-(A-B) Interest Expense (D) Bonds Premium on Payable Bonds Payable (F) (D+E) Carrying Value 1231 11 1231 12 123113 Period Ended 01 0111 (A) Cash Paid (B) Amortized Discount KC)=(A+B) Interest Espense (D) (E) (F)= (-E) Bonds Discount on Carrying Payable Bonds Payable Value 12 3111 1231 12 123113Step by Step Solution
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