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Preparing an Amortization ScheduleEffective Interest Method On January 1, 2020, Williams Inc. issued 8-year, $185,000, 5% bonds, priced to yield 6%, with cash interest payable
Preparing an Amortization ScheduleEffective Interest Method
On January 1, 2020, Williams Inc. issued 8-year, $185,000, 5% bonds, priced to yield 6%, with cash interest payable semiannually on June 30 and December 31. The company amortizes the bond discount using the effective interest method.
Provide an amortization schedule of interest and discount amortization for the 8-year bond term.
Note: Round amounts to two decimal places.
Effective Interest MethodDiscount
Date | Cash | Interest Expense | Discount Amortization | Bonds Payable, Net |
---|---|---|---|---|
Jan. 1, 2020 | ||||
June 30, 2020 | ||||
Dec. 31, 2020 | ||||
June 30, 2021 | ||||
Dec. 31, 2021 | ||||
June 30, 2022 | ||||
Dec. 31, 2022 | ||||
June 30, 2023 | ||||
Dec. 31, 2023 | ||||
June 30, 2024 | ||||
Dec. 31, 2024 | ||||
June 30, 2025 | ||||
Dec. 31, 2025 | ||||
June 30, 2026 | ||||
Dec. 31, 2026 | ||||
June 30, 2027 | ||||
Dec. 31, 2027 | ||||
Total |
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