Question
Paris Electric sold $4,100,000, 5%, 10-year bonds on January 1, 2017. The bonds were dated January 1 and pay interest annually on January 1. Paris
Paris Electric sold $4,100,000, 5%, 10-year bonds on January 1, 2017. The bonds were dated January 1 and pay interest annually on January 1. Paris Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 103.
Prepare a bond premium amortization schedule for the first 4 interest periods.
| Annual Interest Periods | Interest to be Paid | Interest Expense to be Recorded | Premium Amortization | Unamortized Premium | Bond Carrying Value |
| Issue Date | X | X | X | ||
| 1 | |||||
| 2 | |||||
| 3 | |||||
| 4 |
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Gleim CIA Review Part 3 Internal Audit Knowledge Elements
Authors: Irvin N. Gleim
2018 Edition
1618541153, 978-1618541154
