Question
[The following information applies to the questions displayed below.] On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year
[The following information applies to the questions displayed below.]
On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds:
Date | Cash | Interest | Amortization |
| Balance | ||||||||
January 1, Year 1 |
|
|
|
|
|
|
|
|
|
| $ | 54,860 |
|
End of Year 1 | $ | 5,562 |
| $ | 5,376 |
| $ | 186 |
|
|
| 54,674 |
|
End of Year 2 |
| ? |
|
| ? |
|
| ? |
|
|
| 54,470 |
|
End of Year 3 |
| ? |
|
| ? |
|
| 224 |
|
|
| ? |
|
End of Year 4 |
| ? |
|
| 5,316 |
|
| ? |
|
|
| 54,000 |
|
|
Required:
1. Complete the amortization schedule. (Enter all your values in positive. Round your final answers to the nearest whole dollar amount.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started