Calculations Marketing Inc. Issued 14.0% bonds with a par value of $500,000 and a five-year life on January 1, 2023, for $536,800. The bonds pay Interest on June 30 and December 31. The market Interest rate was 12% on the original Issue date. Use TABLE 14A.1 and TABLE 14A.2. (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the total bond Interest expense over the life of the bonds. Total interest expense 2. Prepare an amortization table using the effective Interest method. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar.) Period Cash Interest Ending Paid Jan. 1/23 June 30/23 Dec. 31/23 June 30/24 Dec. 31/24 June 30/25 Dec. 31/25 June 30/26 Dec. 31/26 June 30/27 Dec. 31/27 Totals $ 0 Period Interest Expense Premium Unamortized Amort. premium 0 $ 0 Carrying Value 0
Calculations Marketing Inc. Issued 14.0% bonds with a par value of $500,000 and a five-year life on January 1, 2023, for $536,800. The bonds pay Interest on June 30 and December 31. The market Interest rate was 12% on the original Issue date. Use TABLE 14A.1 and TABLE 14A.2. (Use appropriate factor(s) from the tables provided.) Required: 1. Calculate the total bond Interest expense over the life of the bonds. Total interest expense 2. Prepare an amortization table using the effective Interest method. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar.) Period Cash Interest Ending Paid Jan. 1/23 June 30/23 Dec. 31/23 June 30/24 Dec. 31/24 June 30/25 Dec. 31/25 June 30/26 Dec. 31/26 June 30/27 Dec. 31/27 Totals $ 0 Period Interest Expense Premium Unamortized Amort. premium 0 $ 0 Carrying Value 0
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 15MCQ
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