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Skysong, Inc. issued $5,280,000 of 8% bonds on October 1, 2020, due on October 1, 2025. The interest is to be paid twice a
Skysong, Inc. issued $5,280,000 of 8% bonds on October 1, 2020, due on October 1, 2025. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. Skysong, Inc. closes its books annually on December 31. (a) Your answer is correct. Complete the following amortization schedule for the dates indicated. Use the effective-interest method. (Round answers to O decimal places, eg. 5,275.) Date October 1. 2020 Cash Interest Expense Bond Discount Carrying Amount of Bonds $4,872,274 April 1, 211.2001 243,614 32.414 4,904,688 2021 October 1, 211.200 245,234 34,034 4,938,722 2021 eTextbook and Media List of Accounts
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