Question
PART D: Interpreting a Bond Interest Amortization Table Devin Company computes the following bond interest amortization table for bonds issued on January 1, 2021. Use
PART D: Interpreting a Bond Interest Amortization Table
Devin Company computes the following bond interest amortization table for bonds issued on January 1, 2021. Use the information on this table to answer the questions below.
| Interest Payment Date | Cash Payment Amount | Interest Expense | Decrease in Discount | Discount | Book Value |
| June 30, 2021 | $360,000 | $441,068 | $81,068 | $892,240 | $11,107,760 |
| Dec 31, 2021 | $360,000 | $444,310 | $84,310 | $807,929 | $11,192,071 |
| June 30, 2022 | $360,000 | $447,683 | $87,683 | $720,247 | $11,279,753 |
| Dec 31, 2022 | $360,000 | $451,190 | $91,190 | $629,056 | $11,370,944 |
| June 30, 2023 | $360,000 | $454,838 | $94,838 | $534,219 | $11,465,781 |
| Dec 31, 2023 | $360,000 | $458,631 | $98,631 | $435,587 | $11,564,413 |
| June 30, 2024 | $360,000 | $462,577 | $102,577 | $333,011 | $11,666,989 |
| Dec 31, 2024 | $360,000 | $466,680 | $106,680 | $226,331 | $11,773,669 |
| June 30, 2025 | $360,000 | $470,947 | $110,947 | $115,385 | $11,884,615 |
| Dec 31, 2025 | $360,000 | $475,385 | $115,385 | $0 | $12,000,000 |
- What journal entry will Devin make on June 30, 2022 to record the third interest payment?
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Cost Reduction Systems Target Costing And Kaizen Costing
Authors: Yasuhiro Monden
1st Edition
1563270684, 978-1563270680
