Question

Required information Exercise 9-11A Record bonds issued at a discount and related semiannual interest (LO9-6) The following information applies to the questions displayed below.) On January 1, 2021. White Water issues $460,000 of 5% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 6%, the bonds will issue at $414.920. Exercise 9-11A Part 1 Required: 1. Complete the first three rows of an amortization schedule. (Round your final answers to the nearest whole dollar.) Cash Paid Interest Expense Increase in Carrying Value Carrying Value Date 01/012021 06/30/2021 12/31/2021

Answer 1

SOLUTION

Date	Cash paid	Interest Expense	Increase in Carrying Value	Carrying Value
01/01/2021				414,920
06/30/2021	11,500	12,448	948	415,868
12/31/2021	11,500	12,476	976	416,844

Cash paid- 460,000*5%*6/12 = 11,500

Interest expense-

06/30/2021 - 414,920 * 6% *6/12 = 12,448

12/31/2021 - 415,868 * 6% *6/12 = 12,476