On September 30, 2023, when the market interest rate is 9 percent, Score Ltd. issues $8,000,000 of 11-percent, 20-year bonds for $9,472,126. The bonds pay30. Score Ltd, amortizes bond premium by the effective-interest method.Required1. Prepare an amortization table for the first four semi-annual interest periods. Score amortizes a bond premium by the effective-interest method.2. Record the issuance of the bonds on September 30, 2023, the accrual of interest on December 31, 2023, and the semi-annual interest payment on March 3Requirement 1. Prepare an amortization table for the first four semi-annual interest periods. (Round your answers to the nearest whole dollar.)B: Interest Expense(4.5% of PrecedingBond CarryingAmount)A: Interest PaymentSemi-annual Interest (5.5% of MaturityPeriodValues)Issue date.March 31, 2024September 30, 2024March 31, 2025September 30, 2025440,000440,000440,000440,000426,245C: PremiumAmortization(A-B)13,755D: UnamortizedPremium AccountBalance (D-C)E: Bond CarryingAmount ($8,000,000+ D)

Requirement of the question : 1. Prepare the amortisation schedule 2. Record the journal entries…

On September 30, 2023, when the market interest rate is 9 percent, Score Ltd. issues $8,000,000 of 11-percent, 20-year bonds for $9.472,126. The bonds pe 30. Score Ltd, amortizes bond premium by the effective-interest method. Required 1. Prepare an amortization table for the first four semi-annual interest periods. Score amortizes a bond premium by the effective-interest method. 2. Record the issuance of the bonds on September 30, 2023, the accrual of interest on December 31, 2023, and the semi-annual interest payment on March 2 Requirement 1. Prepare an amortization table for the first four semi-annual interest periods. (Round your answers to the nearest whole dollar.) B: Interest Expense (4.5% of Preceding Bond Carrying Amount) A: Interest Payment Semi-annual Interest (5.5% of Maturity Period Values) Issue date March 31, 2024 September 30, 2024 March 31, 2025 September 30, 2025 440,000 440,000 440,000 440,000 426,245 KILE C: Premium D: Unamortized Amortization Premium Account (A-B) Balance (D-C) 13,755 E: Bond Carrying Amount ($8,000,000 + D)

On September 30, 2023, when the market interest rate is 9 percent, Score Ltd. issues $8,000,000 of 11-percent, 20-year bonds for $9.472,126. The bonds pe 30. Score Ltd, amortizes bond premium by the effective-interest method. Required 1. Prepare an amortization table for the first four semi-annual interest periods. Score amortizes a bond premium by the effective-interest method. 2. Record the issuance of the bonds on September 30, 2023, the accrual of interest on December 31, 2023, and the semi-annual interest payment on March 2 Requirement 1. Prepare an amortization table for the first four semi-annual interest periods. (Round your answers to the nearest whole dollar.) B: Interest Expense (4.5% of Preceding Bond Carrying Amount) A: Interest Payment Semi-annual Interest (5.5% of Maturity Period Values) Issue date March 31, 2024 September 30, 2024 March 31, 2025 September 30, 2025 440,000 440,000 440,000 440,000 426,245 KILE C: Premium D: Unamortized Amortization Premium Account (A-B) Balance (D-C) 13,755 E: Bond Carrying Amount ($8,000,000 + D)

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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