Question

Problem 9-93A (Algorithmic) Preparing a Bond Amortization Table (Straight Line) On January 1, 2021, Distel Company borrowed $27,500 by issuing 3-year, 8.5% bonds with a face amount of $25,000. Interest is paid annually on December 31. Required: Prepare an amortization table. Note: If an amount box does not require an entry, leave it blank and if the answer is zero, enter "O". Round all amounts to the nearest dollar. And, if necessary, round final year to complete the amortization. Distel Company Amortization Table medie ariod.d Interest Expense (Debit) Cash Payment Period (Credit) At issues Premium on Bonds Payable Debit) Premium on Bonds Payable Carrying 12/31/21 12/31/22 12/31/23 Check My Work S more Check My Work uses remaining Previous All work wed imal instructor Save and Exit Submit Assignment for Grading

Answer 1

A 1 Distel Company Amortization Table Cash payment interest expense Premium on Bonds Payable Premium on Bonds Payable Carrying 3 Period (Credit) (Debit) (Debit) Balance) Value 4 At issue 2,500 $ 27,500 5 12/31/21 $ 2,125 $ 1,292$ 833$ 1,667$ 26,667 6 12/31/22 $ 2,125 $ 1,292 $ 833$ 833$ 25,833 7 12/31/23 $ 2,125 $ 1,292 $ 833 $ - $ 25,000

AB 2 Distel Company Amortization Table interest expense Premium on Bonds (Debit) Payable (Debit) Cash payment 3 Period (Credit) 4 At issue 5 12/31/21 =25000*8.5% 6 12/31/22 =25000*8.5% 7 12/31/23 =25000*8.5% Premium on Bonds Payable Balance =27500-25000 =+E4-D5 =+E5-D6 =+E6-D7 Carrying Value 27500 =+F4-05 =+F5-D6 =+F6-07 =+B5-D5 =+B6-D6 =+B7-D7 =+E4/3 =+E4/3 =+E4/3

Note: The answers may be slightly different due to rounding off.