On January 1, 2021, Sheridan Corp. issued five-year bonds with a face value of $340,000 and a coupon interest rate of 6%, with interest payable semi-annually.Click here to view factor tables.

We can calculate the future value of a single amount using the formula below, where n equals the number of periods since making or receiving that payment:

Future value of single payment=Present value of a single payment(1+Interest rate)n

By using this formula, the future value of a single payment can be determined at various times, as seen in Illustration 10A.7:

Jan. 1, 2021	Dec. 31, 2021	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2024
$100	$110	$121	$133	$146
|	|	|	|	|
	$100 1.101	$100 1.102	$100 1.103	$100 1.104
	= $100 1.10	= $100 1.21	= $100 1.33	= $100 1.46

Prepare a partial bond amortization table for the first two interest payments assuming that interest is paid on July 1 and January 1 and that the bonds sold when the market interest rate was 5%. (Round answers to 0 decimal places, e.g. 5,255.)

SHERIDANCORP. Bond Premium Amortization On January 1, 2021
Semi-annual Interest Periods		Interest Payment		Interest Expense		Premium/Discount Amortization		Unamortized Premium/Discount		Bond Carrying Amount
Jan. 1/21								$enter a dollar amount		$enter a dollar amount
July 1/21		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount		enter a dollar amount		enter a dollar amount
Jan. 1/22		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount		enter a dollar amount