Solved

On January 1,2019,Eastern Services Issued $140,000 of Four-Year,9% Bonds When

Question 206

Essay

On January 1,2019,Eastern Services issued $140,000 of four-year,9% bonds when the market rate was 8%.The bonds were issued at $144,713.Eastern uses the effective-interest method to amortize the bond premium.Semiannual interest payments are made on June 30 and December 31 of each year.Prepare the amortization table for the first four interest payments.(Round your answers to the nearest dollar number.)
 Date  Cash  Paid  Interest  Expense  Premium  Amortized  Carrying  Amount 1/1/196/30/1912/31/196/30/2012/31/20\begin{array} { | l | l | l | l | l | } \hline \text { Date } & \begin{array} { c } \text { Cash } \\\text { Paid }\end{array} & \begin{array} { c } \text { Interest } \\\text { Expense }\end{array} & \begin{array} { c } \text { Premium } \\\text { Amortized }\end{array} & \begin{array} { c } \text { Carrying } \\\text { Amount }\end{array} \\\hline 1 / 1 / 19 & & & & \\\hline 6 / 30 / 19 & & & & \\\hline 12 / 31 / 19 & & & & \\\hline 6 / 30 / 20 & & & & \\\hline 12 / 31 / 20 & & & & \\\hline\end{array}

Correct Answer:

verifed

Verified

\[\begin{array} { | l | r | r | r | r | ...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents