Question

Required information (The following information applies to the questions displayed below.) Duval Co. issues four-year bonds with a $109,000 par value on January 1, 2019, at a price of $104,910. The annual contract rate is 5%, and interest is paid semiannually on June 30 and December 31. 1. Prepare a straight-line amortization table for these bonds. (Round your answers to the nearest dollar amount.) Unamortized Discount Carrying Value Semiannual Period-End 1/01/2019 6/30/2019 12/31/2019 6/30/2020 12/31/2020 6/30/2021 12/31/2021 6/30/2022 12/31/2022

Answer 1

Unamortized discount per interest period
=($109000-104910)/8
=$4090/8
=$511.25 per six month
Carrying value of bond= face value - unamortized discount
Semiannual Period End	Unamortized discount	Carrying Value
01-01-2019	$                        4,090.00	$         1,04,910
06-30-2019	$                        3,578.75	$         1,05,421
12-31-2019	$                        3,067.50	$         1,05,933
06-30-2020	$                        2,556.25	$         1,06,444
12-31-2020	$                        2,045.00	$         1,06,955
06-30-2021	$                        1,533.75	$         1,07,466
12-31-2021	$                        1,022.50	$         1,07,978
06-30-2022	$                           511.25	$         1,08,489
12-31-2022	$                                     -	$         1,09,000