Teal Mountain Ltd. issued $ 640,000 of 15-year, 7.00% bonds on January 1, 2022, when the market interest rate was 6.00%. The cash received at the issuance of the bond was $ 702,721.41. Interest is payable semi-annually on July 1 and January 1. Teal Mountain has a December 31 year end.

Prepare a bond amortization schedule for the first four interest periods, using the effective-interest method. (Round answers to 2 decimal places, e.g. 15.75.)

TEAL MOUNTAIN LTD. Bond Premium Amortization Schedule Effective-Interest Method
Semi-Annual Interest Period		Interest Payment		Interest Expense		Amortization		Bond Amortized Cost
Issue Date, Jan. 1, 2022								$
July 1, 2022		$		$		$
Jan. 1, 2023
July 1, 2023
Jan. 1, 2024

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Record the issue of the bonds and the first interest payment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 2 decimal places, e.g. 15.75.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1
July 1

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Record the accrual of the interest on December 31, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 2 decimal places, e.g. 15.75.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31

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Show the balance sheet presentation of the bonds at December 31, 2022. (Round answers to 0 decimal places, e.g. 5,125.)

TEAL MOUNTAIN LTD. Balance Sheet (Partial) For the Month Ended December 31, 2022December 31, 2022For the Year Ended December 31, 2022
Total Shareholders' EquityTotal Current LiabilitiesTotal Property, Plant and EquipmentShareholders' EquityTotal Current AssetsProperty, Plant and EquipmentTotal Non-Current LiabilitiesTotal Liabilities and Shareholders' EquityCurrent AssetsCurrent LiabilitiesLong-Term InvestmentsTotal AssetsShort-Term InvestmentsNon-Current Liabilities
Current Portion of Bonds PayableCashBonds PayableBond Interest ExpenseInterest Payable		$
Shareholders' EquityTotal Shareholders' EquityLong-Term InvestmentsTotal Property, Plant and EquipmentProperty, Plant and EquipmentCurrent LiabilitiesTotal Non-Current LiabilitiesCurrent AssetsTotal Current AssetsShort-Term InvestmentsTotal AssetsTotal Current LiabilitiesNon-Current LiabilitiesTotal Liabilities and Shareholders' Equity
Interest PayableBond Interest ExpenseBonds PayableCurrent Portion of Bonds PayableCash		$

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