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On January 1, 2021, Blossom Ltd. issued bonds with a maturity value of $8,700,000 when the market rate of interest was 4%. The bonds have
On January 1, 2021, Blossom Ltd. issued bonds with a maturity value of $8,700,000 when the market rate of interest was 4%. The bonds have a coupon (contractual) interest rate of 5% and mature on January 1, 2031. Interest on the bonds is payable semi-annually on July 1 and January 1 of each year. The companys year end is December 31.
Q1. Prepare a bond amortization schedule from the date of issue up to and including January 1, 2023. (Round answers to 0 decimal places, e.g. 5,275.)
| BLOSSOM LTD. Bond Premium Amortization Table Effective Interest MethodSemi-Annual Interest Payments 5% Bonds Issued at market rate of 4% | ||||||||
| Date | Interest Payment | Interest Expense | Premium Amortization | Bond Amortized Cost | ||||
| Jan. 1, 2021 | $ | $ | $ | $ | ||||
| July 1, 2021 | ||||||||
| Jan. 1, 2022 | ||||||||
| July 1, 2022 | ||||||||
| Jan. 1, 2023 | ||||||||
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