Question

Return to question Required information (The following information applies to the questions displayed below. Part 1 of 2 On January 1, 2021, Splash City issues $490,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. points Assuming the market interest rate on the issue date is 9%, the bonds will issue at $450,092 Required: 1. Complete the first three rows of an amortization table. (Round your intermediate and final answers to the nearest whole dollar.) ® Answer is complete but not entirely correct. Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 1/1/21 6/30/21 12/31/21 $ $ 17,200 17,200 X $ 20,254 20,392 % 3,054 3,192 X $ 450,092 453,146 456,338 %

Answer 1

Amortization Sechedule Interest Change in Date Cash Paid Expenses Carrying Value 01-01-2021 6/30/21 19600 20254 654 12/31/21 19600 20284 684 Interest Expenses =450092*9%*6/12 20254 Interest Expenses =450746*9%*6/12 20284 Cahs interest = 490000*8%*6/12 19600 Value 450092 450746 45 451430 Discount Amortised = Interest Expenses - Cash interest, Carrying Value = Discount Amoritsed + Carrying value of Bonds Payable in previous Time