Duval Co issues fouryear bonds with a 115000 par value on Ja

Duval Co. issues four-year bonds with a $115,000 par value on January 1, 2017, at a price of $110,888. The annual contract rate is 7%, and interest is paid semiannually on June 30 and December 31. 1. Prepare an amortization table for these bonds. Use the straight-line method of interest amortization. (Round your answers to the nearest dollar amount.) Carrying Semiannual Unamortized Period-End 1/01/2017 6/30/2017 12/31/2017 6/30/2018 12/31/2018 6/30/2019 12/31/2019 6/30/2020 12/31/2020 Discount Value

Solution

Semi-annual period end Unamortized discount Carrying value 1/1/2017 4112 110888 6/30/2017 3598 111402 12/31/2017 3084 111916 6/30/2018 2570 112430 12/31/2018 2056 112944 6/30/2019 1542 113458 12/31/2019 1028 113972 6/30/2020 514 114486 12/31/2020 0 115000