Homework Answers
Bond Amortization Schedule is prepared as shown below:
| A | B | C | D | E | |
| Year | Cash Paid | Bond Interest Expense | Premium amortization | Premium | Carrying Value at end of period |
| 800,000*12%*6/12 | A-C | 51,705.7/8 | D-C | E+C | |
| 04-01-2018 | $51,705.7 | $851,706 | |||
| 9-30-2018 | $48,000 | $41,537 | $6,463 | $45,242 | $845,242 |
| 3-31-2019 | $48,000 | $41,537 | $6,463 | $38,779 | $838,779 |
| 9-30-2019 | $48,000 | $41,537 | $6,463 | $32,316 | $832,316 |
| 3-31-2020 | $48,000 | $41,537 | $6,463 | $25,853 | $825,853 |
| 9-30-2020 | $48,000 | $41,537 | $6,463 | $19,390 | $819,390 |
| 3-31-2021 | $48,000 | $41,537 | $6,463 | $12,926 | $812,926 |
| 9-30-2021 | $48,000 | $41,537 | $6,463 | $6,463 | $806,463 |
| 3-31-2022 | $48,000 | $41,537 | $6,463 | ($0) | $800,000 |
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