Jeff's Outhouse Co. (JOC) issued callable bonds on January 1, 2021. JOC's accountant has projected the following amortization schedule from issuance until maturity: Date Cash interest Effective Decrease in Outstanding 1/1/21 414,040 6/30/21 14,000 12,421 1,579 412,461 12/31/21 14,000 12,374 1,626 410,835 6/30/22 14,000 12,325 1,675 409, 160 12/31/22 14,000 12,275 1,725 407,435 6/30/23 14,000 12,223 1,777 405,658 12/31/23 14,000 12,170 1,830 403,828 6/30/24 14,000 12,115 1,885 401,943 12/31/24 14,000 12,058 1,943 400,000

Jeff's Outhouse Co. (JOC) issued callable bonds on January 1, 2021. JOC's accountant has projected the following amortization schedule from issuance until maturity: Date Cash interest Effective Decrease in Outstanding 1/1/21 414,040 6/30/21 14,000 12,421 1,579 412,461 12/31/21 14,000 12,374 1,626 410,835 6/30/22 14,000 12,325 1,675 409, 160 12/31/22 14,000 12,275 1,725 407,435 6/30/23 14,000 12,223 1,777 405,658 12/31/23 14,000 12,170 1,830 403,828 6/30/24 14,000 12,115 1,885 401,943 12/31/24 14,000 12,058 1,943 400,000

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 96PSA

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