Question
Sandhill Cars Co. issued $1.66 million of 5%, 5-year bonds on January 1, 2021. The bonds were dated January 1 and pay interest annually. The
Sandhill Cars Co. issued $1.66 million of 5%, 5-year bonds on January 1, 2021. The bonds were dated January 1 and pay interest annually. The bonds are secured with real estate holdings. The market interest rate was 4% for these bonds. Sandhill has a calendar year end.
Prepare an effective interest amortization table for these bonds. (Round answers to 0 decimal places, e.g. 5,275.)
| SANDHILL CARS CO. Bond Premium Amortization Table Effective Interest MethodAnnual Interest Payments 5% Bonds Issued at market rate of 4% | ||||||||
| Date | Interest Payment | Interest Expense | Premium Amortization | Bond Amortized Cost | ||||
| Jan. 1, 2021 | $ | $ | $ | $ | ||||
| Jan. 1, 2022 | ||||||||
| Jan. 1, 2023 | ||||||||
| Jan. 1, 2024 | ||||||||
| Jan. 1, 2025 | ||||||||
| Jan. 1, 2026 | ||||||||
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Accounting Principles
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
7th Canadian Edition Volume 2
1119048478, 978-1119048473
