On July 1, 20X7, Ring Co. issued $250,000, 14% bonds payable at a premium. The bonds are due in ten years. Interest is payable semiannually every June 30 and December 31. On December 31, 20X7, and June 30, 20X8, Ring made the semiannual interest payments due and recorded interest expense and amortization of bond premium.

With the proceeds of the bond issuance, Ring retired other debt. Ring recorded a gain on the early extinguishment of the other debt.

Required:

Items 1 through 7, contained in the partially completed amortization table, represent formulas used to calculate information needed to complete the table. Select your answers from the following list of formulas. Each formula may be selected once, more than once, or not at all. Stated interest rate and effective interest rate are stated on an annual basis.

1	Carrying amount 7/1/X7
2	Cash paid 12/31/X7
3	Amortization 12/31/X7
4	Unamortized premium 12/31/X7
5	Interest expense 6/30/X8
6	Carrying amount 6/30/X8
7	Effective annual interest rate

A	Face amount x stated interest rate.
B	Face amount x effective interest rate.
C	Carrying amount x stated interest rate.
D	Carrying amount x effective interest rate.
E	Present value of face amount + present value of all future interest payments at date of issuance.
F	Carrying amount of bonds in the previous period - amortization for the current period.
G	Carrying amount of bonds in the previous period + amortization for the current period.
H	Cash paid - interest expense.
I	Cash paid + interest expense.
J	(Face amount x stated interest rate) x .
K	(Face amount x effective interest rate) x .
L	(Carrying amount at the beginning of the period x stated interest rate) x 1/2.
M	(Carrying amount at the beginning of the period x effective interest rate) x 1/2.
N	Carrying amount - face amount.
O	(Interest expense/carrying amount at the beginning of the period) x 2
P	(Cash paid/carrying amount) x 2.
Q	Face amount - unamortized premium.

	CASH PAID	INTEREST EXP	AMORTIZATION	CARRYING AMOUNT	UNAMORTIZED PREMIUM
7/1/X7				(1)
12/31/X7	(2)	$14,100	(3)	$349,100	(4)
6/30/X8	$17,500	(5)	$3,536	(6)