Question
On January 1, 2017, Bramble Limited paid $561,779.98 for 14% bonds with a maturity value of $524,000. The bonds provide the bondholders with a 12%
On January 1, 2017, Bramble Limited paid $561,779.98 for 14% bonds with a maturity value of $524,000. The bonds provide the bondholders with a 12% yield. They are dated January 1, 2017, and mature on January 1, 2022, with interest receivable on December 31 of each year. Bramble accounts for the bonds using the amortized cost approach, applies ASPE using the effective interest method, and has a December 31 year end.
Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 52.75.)
Schedule of Interest Income and Bond Premium Amortization Effective Interest Method | |||||||
Date | Cash Received | Interest Income | Premium Amortization | Carrying Amount of Bonds | |||
01/01/17 | $ | ||||||
12/31/17 | $ | $ | $ | ||||
12/31/18 | |||||||
12/31/19 | |||||||
12/31/20 | |||||||
12/31/21 | |||||||
$ | $ | $ |
how to calculate the interest income and preiuim amortization with notes
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