The following partial amortization schedule is available for Courtney Company who sold $500,000, five-year, 10% bonds on January 1, 2014 for $520,000 and uses annual straight-line amortization. Which of the following amounts should be shown in cell (iii)?
A) $10,000
B) $20,000
C) $4,000
D) $2,000

Question

The following partial amortization schedule is available for Courtney Company who sold $500,000, five-year, 10% bonds on January 1, 2014 for $520,000 and uses annual straight-line amortization.  Which of the following amounts should be shown in cell (iii)?
A) $10,000 
B) $20,000 
C) $4,000 
D) $2,000

Quizplus · Accepted Answer

The Answer of The following partial amortization schedule is available for Courtney Company who sold $500,000, five-year, 10% bonds on January 1, 2014 for $520,000 and uses annual straight-line amortization.  Which of the following amounts should be shown in cell (iii)?
A) $10,000 
B) $20,000 
C) $4,000 
D) $2,000

The Following Partial Amortization Schedule Is Available for Courtney Company