I need Accounting help please Bonds Issued at a Premium (Effective Interest) Hal

Question

I need Accounting help please

Bonds Issued at a Premium (Effective Interest) Haley Industries issued $120,000 of 11% 7-year bonds on December 31, 2013, with a $5,842 pre Required: Interest is paid annually on December 31 The market rate ofiteret 10 Hide Prepare the amortization table using the effective interest rate method. If an amount box does not require an entry, leave it blank or enter "0". If required, round your answers to the nearest whole dollar Haley Industrias Amortization Table Period Cash Payment (Credit) Interest Expense (Debit) Premium on Bonds Payable (Debit) Premium on Bonds Payable Balance Carrying Value At issue 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20

Explanation / Answer

Amortisation Table:

Period Cash Payment $ Interest Expense (Debit) $ Premium Bond Payable (Debit) $ Premium on Bond Payable Balance $ Carrying Balance$ At Issue (120000) 5842 125842 12/31/14 13200 12584 616 5226 125226 12/31/15 13200 12523 677 4549 124549 12/31/16 13200 12455 745 3804 123804 12/31/17 13200 12380 820 2984 122984 12/31/18 13200 12299 901 2083 122083 12/31/19 13200 12208 992 1091 121091 12/31/20 13200 12109 1091 0 120000

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