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On January 1, 2016, a company issues 3-year bonds with a face value of $130,000 and a stated interest rate of 7%. Because the market
On January 1, 2016, a company issues 3-year bonds with a face value of $130,000 and a stated interest rate of 7%. Because the market interest rate is 5%, the company receives $137,080 for the bonds Required: Fill in the table assuming the company uses effective-interest bond amortization. (Round your answers to the nearest whole dollar.) Table Interest Expense Amortized Premium Carrying Value Premium on Period Ended Bonds Payable Bonds Payable Cash Paid $130,000 130,000 130,000 130,000 $ 130,000 130,000 130,000 130,000 01/01/2016 12/31/2016' $ 9,100 S 9,100 9,100 6,854 $ 2,246 9,100 9,100 12/31/2017 12/31/2018
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