Question
Sandhill Co. is building a new hockey arena at a cost of $2,310,000. It received a downpayment of $490,000 from local businesses to support
Sandhill Co. is building a new hockey arena at a cost of $2,310,000. It received a downpayment of $490,000 from local businesses to support the project, and now needs to borrow $1,820,000 to complete the project. It therefore decides to issue $1,820,000 of 12%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 11%. Prepare a bond amortization schedule up to and including January 1, 2023, using the effective interest method. (Round answers to O decimal places, e.g. 38,548.) Date 1/1/19 $ 1/1/20 Cash Paid 218400 Inferest Expense 200200 1/1/21 218400 198198 1/1/22 218400 1/1/23 218400 Premium Amortization 18200 Carryir Amount Bonds
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