how do I calculate the cash E09-16.mp4 The folowing information applies to the q
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how do I calculate the cash
E09-16.mp4 The folowing information applies to the questions displayed below on June 30 and December 31 each year. The market interest rate on the issue date is 8% On January 1, 2018. Splash Cryissues$480,000 of 7% bonds due n 10 years with and the bonds issued at $447,383. terest payable se naly Required information 9.09 points Required: an amortization schedule, shovw that the bonds have a carlng value of $452.034 on December 31, 2019. (Round Interest expense to nearest whole dollar.) Interest Increase in Carrying Value Cash Paid S 447,383 448 478 449,617 450,802 452,034 01/01/18 6/30/18 16,800 17.895 s 12/31/18 6130/19 12/31/19 1,095 1.139 16,800 16,800 16.800 17,939 17.985 18,032 232 Hints References Book &Resources; 4/2/2018 Tyne here to searchExplanation / Answer
Amortization Schedule: Datte cash paid Interest Increase in Carrying amount Expensse Carrying amount 01.01.2018 447383 30.06.2018 16800 17895 1095 448478 31.12.2018 16800 17939 1139 449617 30.06.2019 16800 17985 1185 450802 31.12.2019 16800 18032 1232 452034 Journal entry: Bonds payable Dr. 480,000 Loss on retirement of bonds 27966 Discount on bonds payable 27966 Cash Account 480000 Note: As nothing is mentioned on retirement, it has been made at par value. Hence, the cash paidd is equal to par value.
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