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Shuttle Company issued $900,000, three-year, 8 percent bonds on January 1, 2017. The bond interest is paid each December 31, the end of the company's
Shuttle Company issued $900,000, three-year, 8 percent bonds on January 1, 2017. The bond interest is paid each December 31, the end of the company's fiscal year. The bond was sold to yield 7 percent. Use Table 9C.1, Table 9C.2 (Round time value factor to 4 decimal places.) Required: 1. Complete a bond payment schedule. Use the effective-interest method. (Make sure that the unamortized discount/premium equals to 'O' and the Net Liability equals to face value of the bond in the last period. Interest expense in the last period should be calculated as Cash Interest (+) discount ! (-) premium amortized. Round intermediate and final answers to the nearest whole dollar.) Bond Payment Schedule Cash Interest Amortization Payment Expense of Premium Date Carrying Amount 1/1/2017 12/31/2017 12/31/2018 12/31/2019 2. What amounts will be reported on the financial statements (statement of financial position, statement of earnings, and statement of cash flows) for 2017, 2018, and 2019? (Round intermediate and final answers to the nearest whole dollar.) 2017 2018 2019 Interest expense Bonds payable Interest payment Issuance of bonds Payment of bonds
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