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! Required information [The following information applies to the questions displayed below.] On January 1, 2024, Splash City issues $400,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 9% and the bonds issued at $367,422. Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $369,707 on December 31, 2025. (Round your final answers to nearest whole dollar.) Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 01/01/2024 06/30/2024 12/31/2024 06/30/2025 12/31/2025 $ 16,534 $ 534 366,888

! Required information [The following information applies to the questions displayed below.] On January 1, 2024, Splash City issues $400,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 9% and the bonds issued at $367,422. Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $369,707 on December 31, 2025. (Round your final answers to nearest whole dollar.) Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 01/01/2024 06/30/2024 12/31/2024 06/30/2025 12/31/2025 $ 16,534 $ 534 366,888

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 11E
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! Required information [The following information applies to the questions displayed below.] On January 1, 2024, Splash City issues $400,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 9% and the bonds issued at $367,422. Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $369,707 on December 31, 2025. (Round your final answers to nearest whole dollar.) Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 01/01/2024 06/30/2024 12/31/2024 06/30/2025 12/31/2025 $ 16,534 $ 534 366,888
Transcribed Image Text:! Required information [The following information applies to the questions displayed below.] On January 1, 2024, Splash City issues $400,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 9% and the bonds issued at $367,422. Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $369,707 on December 31, 2025. (Round your final answers to nearest whole dollar.) Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 01/01/2024 06/30/2024 12/31/2024 06/30/2025 12/31/2025 $ 16,534 $ 534 366,888
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