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On January 1, 2019, Swifty Company sold 10% bonds having a maturity value of $500,000, which provides the bondholders with a 9% yield. The
On January 1, 2019, Swifty Company sold 10% bonds having a maturity value of $500,000, which provides the bondholders with a 9% yield. The bonds are dated January 1, 2019, and mature January 1, 2022 (3 year bonds), with interest payable June 30th and December 31 of each year (semi- annual bonds). Swifty Company allocates interest and unamortized discount or premium on the effective-interest basis. Prepare a schedule of interest expense and bond amortization for 2019-2021. You'll need to calculate the issue price of the bonds to fill in for the 1/1/19 carrying value. Date Schedule of Interest Expense and Bond Premium Amortization Cash Paid Effective-Interest Method Interest Expense Carrying Premium Amortized Amount of Bonds 1/1/19 6/30/19 12/31/19 6/30/20 12/31/20 6/30/21 12/31/21
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