Problem 1.c.ii) Complete the bond amortization table (only fill in the necessary cells; round each input to the nearest dollar; see examples on pp.511-515 of your textbook for help) Cash Interest Interest Prem. / Disc. Prem. / Disc. Bond Carrying Date Payment Expense Amortization Balance Value - Over time... - the carrying value will [increase / maintain / decrease] - interest expense will increase / maintain / decrease] (answer only if applicable) - Over the life of the bond, the premium amortization amount will... [increase / maintain / decrease]. Over the life of the bond, the discount amortization amount will... [increase / maintain / decrease)... Problem 1.c.iii) Provide journal entries for the following transactions (only fill in the necessary cells). Issue date DR CR 1st interest payment DR CR 2nd interest payment DR CR Chapter 9 Homework Set Problem 1) LO 9.1:Straight-Line Amortization On January 1, 2021, Beerbo issues $100,000 of bonds. The bonds have a stated rate (ie. coupon rate) of 10%. The bonds mature on December 31, 2023. Complete the tasks for each scenario below. Use the present value tables below when necessary. Assume Beerbe has a December 31 fiscal year-end (FYE), uses the straight-line method to amortize premiums and discounts, and has the following accounts in its ledger: Bonds Payable Interest Expense - Cash - Premium on Bonds Payable Discount on Bonds Payable PV $1 n = 3 n = 6 4.5% 5.0% 5.5% 9.0% 10.0% 11.0% 0.87630 0.86384 0.85161 0.77218 0.75131 0.73119 0.76790 0.74622 0.72525 0.59627 0.564470.53464 PVOA $1 n = 3 n = 6 4.5% 5.0% 5.5% 9.0% 10.0% 11.0% 2.74896 2.72325 2.69793 2.53129 2.48685 2.44371 5.15787 5.07569 4.99553 4.48592 4.35526 4.23054 Problem 1.a) market rate stated rate interest payments per year market rate (a.k.a. effective rate; yield) issue quote (price as a percentage of face value) 2 (June 30; December 31) 11% 98.5 Problem 1.c.i) Bond information - The bonds are issued at [a premium/ par / a discount]. - The bonds pay interest (annually / semi-annually] - The amount of cash interest paid each period is. $ - On each interest payment date, the cash interest paid will be... [greater than / equal to / less than] interest expense recognized. - The total number of interest payments over the bond term is. - Determine bond issue price using the using the issue quote above (round your results to the nearest dollar - bond face value. $ bond issue quote (i.e. price as a percentage of face value). - bond issue price. $ - (answer only if applicable) the beginning balance of bond premium / discount amount is ....... $