Question
Pediatric Dispensary borrowed $600,000 on January 2, 2016, by issuing a 15 %15% serial bond payable that must be paid in three equal annual installments
Pediatric Dispensary borrowed $600,000 on January 2, 2016, by issuing a 15 %15% serial bond payable that must be paid in three equal annual installments plus interest for the year. The first payment of principal and interest comes due January 2, 2017. Complete the missing information. Assume bonds are issued at face value.
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On December 31, 2016,when the market interest rate is 14% Vincent RealtyVincent Realty issues $500,000 of 15.25%,10-year bonds payable. The bonds pay interest semiannually.Vincent RealtyVincent Realty received $532,896 in cash at issuance.
Requirements
1. | Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round all numbers to the nearest whole dollar.) |
2. | Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments. |
Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round all numbers to the nearest whole dollar.)
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| Interest |
| Carrying |
| Cash Paid | Expense | Amortized | Amount |
12/31/2016 |
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06/30/2017 |
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12/31/2017 |
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