Homework Answers
| 1) | Under the straight line method of amortization | ||||
| a. Date - semiannual interest payment date | b. Cash paid for the period (19000 x 9%/2) | c. Interest Expense for the period. | d. Amortization of premium for the period(1900/16) | e. Unamortized premium at the end of the period | f. Ending carrying value |
| 1-Jan-18 | $1,800.00 | $ 20,800.00 | |||
| 30-Jun-18 | $855.00 | $742.50 | $112.50 | $1,687.50 | $20,687.50 |
| Option c is correct | 20,687 | ||||
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