Question

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Problem 10-12A On January 1, 2019, Oriole Company issued $2,780,000 face value, 12%, 10-year bonds at $2,629,150. This price resulted in an effective-interest rate of 13% on the bonds. Oriole uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on January 1. Your answer is correct. Prepare the journal entry to record the issuance of the bonds on January 1, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Titles and plante Date Jan 1, 2019 Cash Discount on Bonds Payable Bonds Payable SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is partially correct. Try again. Prepare an amortization table through December 31, 2021 (three interest periods), for this bond issue. (Round answers to o decimal places, e.g. 15,250.) Oriole Company Bond Discount Amortization Effective-Interest Method-Annual Interest Payments Annual Interest Periods Interest to be Paid Discount Amortization Unamortized Bond Carrying Value Discount Issue date 32350 HOW LIST OF ACCOUNTS

Answer 1

Bond Discount Amortisation
Effective Interest Method
Period	Interest to be paid	Interest Expense to be recorded	Dicount Amotisation	Unamortized Discount	Bond Carrying Value
Issue Date				1,50,850	26,29,150
1	3,33,600	3,41,790	8,190	1,42,661	26,37,340
2	3,33,600	3,42,854	9,254	1,33,406	26,46,594
3	3,33,600	3,44,057	10,457	1,22,949	26,57,051
4	3,33,600	3,45,417	11,817	1,11,133	26,68,867
5	3,33,600	3,46,953	13,353	97,780	26,82,220
6	3,33,600	3,48,689	15,089	82,691	26,97,309
7	3,33,600	3,50,650	17,050	65,641	27,14,359
8	3,33,600	3,52,867	19,267	46,374	27,33,626
9	3,33,600	3,55,371	21,771	24,603	27,55,397
10	3,33,600	3,58,203	24,603	0	27,80,000