Preparing and Using an Amortization Table $($Straight Line$)$

Girves Development Corporation has agreed to construct a plant in a new industrial park. To finance the construction, the county government issued $$5,000,000$ of $10-$year, $4\mathrm{.}75\%$ revenue bonds for $$5,125,000$ on January $1,2024.$ Girves will pay the interest and principal on the bonds. When the bonds are repaid, Girves will receive title to the plant. In the interim, Girves will pay property taxes as if it owned the plant. This financing arrangement is attractive to Girves, as state and local government bonds are exempt from federal income taxation and thus carry a lower interest rate. The bonds are attractive to investors, as both Girves and the county are issuers. The bonds pay interest semiannually on June $30$ and December $31.$

Required:

Question Content Area

$1.$ Prepare an amortization table through December $31,2025,$ for these revenue bonds assuming straight$-$line amortization. If an amount box does not require an entry, leave it blank and if the answer is zero, enter $"0".$

Girves Development Corporation

Amortization Table

Period Cash

Payment

$($Credit$)$ Interest

Expense

$($Debit$)$ Premium on

Bonds Payable

$($Credit$)$ Premium on

Bonds Payable

Balance

Carrying

Value

At issue $fill in the blank e$8$efae$0$a$205100$b$\_1$

$fill in the blank e$8$efae$0$a$205100$b$\_2$

$fill in the blank e$8$efae$0$a$205100$b$\_3$

$fill in the blank e$8$efae$0$a$205100$b$\_4$

$fill in the blank e$8$efae$0$a$205100$b$\_5$

$6/30/24$ fill in the blank e$8$efae$0$a$205100$b$\_6$

fill in the blank e$8$efae$0$a$205100$b$\_7$

fill in the blank e$8$efae$0$a$205100$b$\_8$

fill in the blank e$8$efae$0$a$205100$b$\_9$

fill in the blank e$8$efae$0$a$205100$b$\_10$

$12/31/25$ fill in the blank e$8$efae$0$a$205100$b$\_11$

fill in the blank e$8$efae$0$a$205100$b$\_12$

fill in the blank e$8$efae$0$a$205100$b$\_13$

fill in the blank e$8$efae$0$a$205100$b$\_14$

fill in the blank e$8$efae$0$a$205100$b$\_15$

$6/30/26$ fill in the blank e$8$efae$0$a$205100$b$\_16$

fill in the blank e$8$efae$0$a$205100$b$\_17$

fill in the blank e$8$efae$0$a$205100$b$\_18$

fill in the blank e$8$efae$0$a$205100$b$\_19$

fill in the blank e$8$efae$0$a$205100$b$\_20$

$12/31/27$ fill in the blank e$8$efae$0$a$205100$b$\_21$

fill in the blank e$8$efae$0$a$205100$b$\_22$

fill in the blank e$8$efae$0$a$205100$b$\_23$

fill in the blank e$8$efae$0$a$205100$b$\_24$

fill in the blank e$8$efae$0$a$205100$b$\_25$

Question Content Area

$2.$ Conceptual Connection: Select whether or not Girves should record the plant as an asset after it is constructed.

$3.$ Conceptual Connection: Select whether or not Girves should record the liability for these revenue bonds.