CALCULATOR | FULL SCREEN | PRINTER VERSION 4 BACK NEXT Problem 14-5 In each of t

Question

CALCULATOR | FULL SCREEN | PRINTER VERSION 4 BACK NEXT Problem 14-5 In each of the following independent cases, the company closes its books on December 31. Sage Co. sells $464,000 of 8% bonds on March 1, 2017. The bonds pay interest on September i and March 1. The due date of the bonds is september 1, 2020. The bonds yield 12% Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.) Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Discount Amortized Carrying Amount of Bonds Cash Interest Date PaidExpense 3/1/20 ce sens, ne edugenishared assignment test agi stuni? deosn t 1935468#N1004A rved. A Div son oflehrw

Explanation / Answer

Part A

Date Cash Paid Interest Expense Discount Amortized Carrying Amount 03-01-2017 0 0 0                  4,18,367 09-01-2017 18560 25102 6542                  4,24,909 03-01-2018 18560 25495 6935                  4,31,844 09-01-2018 18560 25911 7351                  4,39,194 03-01-2019 18560 26352 7792                  4,46,986 09-01-2019 18560 26819 8259                  4,55,245 03-01-2020 18560 27315 8755                  4,64,000

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