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Please show all the calculations! Thanks! Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $1,050,000 in 5% bonds (payable on December 31, 2032)
Please show all the calculations! Thanks!
Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $1,050,000 in 5% bonds (payable on December 31, 2032) on December 31, 2022, for $934,500. Interest is paid on June 30 and December 31. The market rate of interest is 9%. Required: Prepare the amortization table through December 31, 2024, using the effective interest rate method. If required, round your answers to the nearest dollar. Sicily Corporation Amortization Table Period Cash Payment (Credit) Interest Expense (Debit) Discount on Bonds Payable (Credit) Bond Payable Carrying Value (Credit) Discount on Bonds Payable Balance (Debit) 115,500 At issue NA NA NA $ 934,500 06/30/23 26,250 42,053 15,803 99,697 950,303 12/31/23 26,250 42,764 16,514 83,183 966,817 06/30/24 26,250 43,507 17,257 65,926 984,074 12/31/24 26,250 44,283 18,033 47,893 1,002,107Step by Step Solution
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