Cornerstone Exercise 9-31 (Algorithmic) Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $900,000...
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Cornerstone Exercise 9-31 (Algorithmic) Bonds Issued at a Discount (Effective Interest)
Sicily Corporation issued $900,000 in 7% bonds (payable on December 31, 2029) on January 1, 2020, for $855,000. Interest is paid on June 30 and December 31. The market rate of interest is 9%.
Required:
Prepare the amortization table through December 31, 2021, using the effective interest rate method. If an amount box does not require an entry, leave it blank and if the answer is zero, enter "0". If required, round your answers to the nearest whole dollar.
Sicily Corporation
Amortization Table
Period
Cash Payment (Credit)
Interest Expense (Debit)
Discount on Bonds Payable (Credit)
Discount on Bonds Payable Balance
Carrying Value
At issue
$fill in the blank 1
6/30/20
fill in the blank 6
12/31/20
fill in the blank 11
6/30/21
fill in the blank 16
12/31/21
fill in the blank 21
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