Chat with AI
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 50
(Supplement 10A) Completing an Amortization Schedule (Straight-Line Amortization)
The Peg Corporation (TPC) issued bonds and received cash in full for the issue price. The bonds were dated and issued on January 1, 2012. The stated interest rate was payable at the end of each year. The bonds mature at the end of four years. The following schedule has been prepared (amounts in thousands):
Required:
1. Complete the amortization schedule.
TIP: The switch in amortization from $25 to $26 in 2015 is caused by rounding.
2. What was the maturity amount (face value) of the bonds
3. How much cash was received at date of issuance of the bonds
4. Was there a premium of a discount If so, which and how much was it
5. How much cash is paid for interest each period and will be paid in total for the full life of the bond issue
6. What is the stated interest rate
7. What is the market interest rate
8. What amount of interest expense should be reported on the income statement each year
9. Show how the bonds should be reported on the balance sheet at the end of 2013 and 2014.
The Peg Corporation (TPC) issued bonds and received cash in full for the issue price. The bonds were dated and issued on January 1, 2012. The stated interest rate was payable at the end of each year. The bonds mature at the end of four years. The following schedule has been prepared (amounts in thousands):
Required:
1. Complete the amortization schedule.
TIP: The switch in amortization from $25 to $26 in 2015 is caused by rounding.
2. What was the maturity amount (face value) of the bonds
3. How much cash was received at date of issuance of the bonds
4. Was there a premium of a discount If so, which and how much was it
5. How much cash is paid for interest each period and will be paid in total for the full life of the bond issue
6. What is the stated interest rate
7. What is the market interest rate
8. What amount of interest expense should be reported on the income statement each year
9. Show how the bonds should be reported on the balance sheet at the end of 2013 and 2014.
Explanation
Verified
Verified
(1) Compute the amortization schedule:
...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
