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P10-10 Preparing a Bond Amortization Schedule for a Bond Issued at a Premium LO10-5 The folowing information appies to the questions displayed below On amortization

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P10-10 Preparing a Bond Amortization Schedule for a Bond Issued at a Premium LO10-5 The folowing information appies to the questions displayed below On amortization method. The partialily completed amortization schedule below pertains to the bonds n year on December 31. The bonds mature at the end of four years.Olive uses the effective-interest s30.532 30.409 30.279 s 1650 1,527 $123 End of Year 2 End of Yer 3 End of Year 1507 30.000 Preparing a Bond Amortization 9 P10-10 Part 1 Required 1. Complete the amortization schedule. (Enter all your values in positive. Round your final answers to nearest whole dollar amoun Date Cash $30,532 123 $30,409 $30,279 $ 1,650 1,527 $ End of Year 1 End of Year 2 136 1,507 $30,000 0 value: 5.88 points P10-10 Part 2 2. When the bonds mature at the end of Year 4, what amount of principal will Olive pay investors? References P10-10 Part 2 value: 5.88 points P10-10 Part 3 3. How much cash was received on the day the bonds were issued (sold)? References P10-10 Part 3 Worksheet 12. 58B P10-10 Part 4 . Were the bonds issued at a premium or a discount? If so, what was the amount of the premium or discount? 13.88pol 5.88 points P10-10 Part 5 5. How much cash will be disbursed for interest each period and in total over the life of the bonds? in total P10-10 Part 5 Worksheet 5.88 points P10-10 Part 6 6. What is the coupon rate? (Enter your answer as a percenta ge rounded to 1 declmal place (le. 0.123 should be entered as 12.3),) References Worksheet P10-10 Part 6 5 5.88 points P10-10 Part 7 7. What was the annual market rate of interest on the date the bonds were issued? (Enter your answer as a 12.3)) percentage rounded to 1 decimal place (ie.0.123 should be entered P10-10 Part 7 16s 5.88 points P10-10 Part 8 6. What amount of interest expense will be reported on the income statement for Year 2 and Year 37 (Round your final answers to nearest whole dollar amount.) 17. 592 po P10-10 Part 9 9. What amount will be reported on the balance sheet at the end of Year 2 and Year 3

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