Question

Problem 14-1 The following amortization and interest schedule reflects the issuance of 10-year bonds by Bridgeport Corporation on January 1, 2011, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statements are prepared once yearly Amortization Schedule Amount Unamortized Carrying Value Year Cash Interest 1/1/2011 2011 $18,070 2012 2013 2014 2015 2016 2017 2018 2019 2020 18,070 18,070 18,070 18,070 18,070 18,070 18,070 18,070 18,070 $20,303 20,638 21,023 21,466 21,976 22,562 23,235 24,010 24,901 25,932 $45,346$135,354 137,587 140,155 143,108 146,504 150,410 154,902 160,067 166,007 172,838 180,700 43,113 40,545 37,592 34,196 30,290 25,798 20,633 14,693 7,862 (a) Indicate whether the bonds were issued at a premium or a discount.

Answer 1

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135,35t 45 346 an Cash 20 Disounl on Band pabl Discoun on d al Cio Recer d the ssonds D83 coun-l bn bonds payable 80,700 a bl Dec 3) 20 11 o 30 3 unt on Bends pajable 2 33 C534643 I13 2 nteres /To Record助terest Exper Tneres 18070 2 01S 18040 Dec 3 Tn tere Discount bo Bomd Qb 51 1O C20 433 14643 Payabl 180 To KeCO1