Preparing an Amortization ScheduleEffective Interest Method On January 1, 2020, Williams Inc. issued 8-year, $185,000,...
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Accounting
Preparing an Amortization ScheduleEffective Interest Method
On January 1, 2020, Williams Inc. issued 8-year, $185,000, 5% bonds, priced to yield 6%, with cash interest payable semiannually on June 30 and December 31. The company amortizes the bond discount using the effective interest method.
Provide an amortization schedule of interest and discount amortization for the 8-year bond term.
Note: Round amounts to two decimal places.
Effective Interest MethodDiscount
Date
Cash
Interest Expense
Discount Amortization
Bonds Payable, Net
Jan. 1, 2020
June 30, 2020
Dec. 31, 2020
June 30, 2021
Dec. 31, 2021
June 30, 2022
Dec. 31, 2022
June 30, 2023
Dec. 31, 2023
June 30, 2024
Dec. 31, 2024
June 30, 2025
Dec. 31, 2025
June 30, 2026
Dec. 31, 2026
June 30, 2027
Dec. 31, 2027
Total
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