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Please explain how you got the answers with fill calculations. Thank you E10-15 Preparing a Debt Payment Schedule with the Effective-Interest Method of Amortization, and
Please explain how you got the answers with fill calculations. Thank you
E10-15 Preparing a Debt Payment Schedule with the Effective-Interest Method of Amortization, and Determining Reported Amounts LO10-3 Shuttle Company Issued $1,000,000, three-year, 10 percent bonds on January 1 , year 1 . The bond Interest Is paid each December 31 , the end of the company's fiscal year. The bond was sold to yleld 9 percent. Use Table 9C.1, Table 9C.2. (Round tlme value factor to 4 decimal places.) Required: 1. Complete a bond payment schedule. Use the effectlve-Interest amortization method. (Make sure that the unamortized dlscount/premlum equals to ' 0 ' and the Net Llability equals to face value of the bond In the last perlod. Interest expense In the last perlod should be calculated as Cash Interest (+) dlscount / ( ) premlum amortized. Round Intermedlate and final answers to the nearest whole dollar.) 2. What amounts will be reported on the financlal statements (statement of financlal position, statement of earnings, and statement of cash flows) for year 1 , year 2 , and year 3 ? (Round Intermedlate and final answers to the nearest whole dollar.)Step by Step Solution
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