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Question Champs Ltd. is authorized to issue $7.750,000 of 7 percent. 10-year bonds. On January 2.2020, the contract date, when the market interest rates percent,
Question Champs Ltd. is authorized to issue $7.750,000 of 7 percent. 10-year bonds. On January 2.2020, the contract date, when the market interest rates percent, the company is $6.200.000 bonds and receives cash of $5.778.700 Interest is paid on June 30 and December 31 each year Required 1. Prepare an amortization table for the first four semi-annual interest periods Champs Lid amortizes bond discounts by the effective interest method 2. Record the issue of bonds on January 2, the first semi-annual interest payment on June 30, and the second payment on December 31 3. Show the balance sheet presentation of the bond on the date of issue and on December 31, 2021 Amortization Table A B D Interest Interest Expense Unamorized Payment 14.0% of Discount Discount Account Bond Carrying Somi-annual (3.5% of Preceding Bond Amortization Balance Amount Interest Period Maturity Values Carrying Amount) (B-A (DC) 56,200.000 Jan. 2. 2020
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