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On January 1, 2021, Crane Satellites issued $1,060,000, 10-year bonds. The bonds pay semi-annual interest on July 1 and January 1, and Crane has a
On January 1, 2021, Crane Satellites issued $1,060,000, 10-year bonds. The bonds pay semi-annual interest on July 1 and January 1, and Crane has a December 31 year end. A partial bond amortization schedule is presented below: Interest Payment Interest Expense Amortization Semi-Annual Interest Period Jan. 1, 2021 July 1, 2021 Jan. 1, 2022 July 1, 2022 Jan. 1, 2023 July 1, 2023 Jan. 1, 2024 $[1] 31,800 31,800 31,800 31,800 31,800 $[2] 34,557 34,653 34,753 34,857 34,964 $2,664 2,757 [3] [4] 3,057 3,164 Bond Amortized Cost $984,674 987,338 990.095 992.948 [5] 998.958 1.002.122 Were the bonds issued at a premium or a discount? e Textbook and Media List of Accounts What is the face value of the bonds? Face value of the bonds $ What is the contractual rate of interest? Contractual rate of interest % e Textbook and Media List of Accounts Fill in the missing amounts for items [1] through [5]. Interest Payment Interest Expense Amortization Bon $[1] $[2] $2,664 Semi- Annual Interest Period Jan. 1, 2021 July 1, 2021 Jan. 1, 2022 July 1, 2022 Jan. 1, 2023 July 1, 2023 31,800 34,557 2,757 31,800 34,653 [3] 31,800 34,753 [4] [5] 31,800 34,857 3,057 Jan. 1, 2024 31,800 34,964 3,164 Fill in the missing amounts for items through [5. terest Payment Interest Expense Amortization Bond Amortized Cost $984,674 $ [2] $2,664 987,338 31,800 34,557 2,757 990,095 31,800 34,653 [3] 992,948 31,800 34,753 [4] [5] 31.800 34,857 3,057 998,958 31,800 34,964 3.164 1,002,122
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