Homework SourseP20A4 bookstatic Lexington Corporation uses the interest met
P20A-4 (book/static) Lexington Corporation uses the interest method to amortize the premium 1. Complete the amortization schedula Value Beg Expense to Be
Solution
Lexington Corporation
Amortization Schedule
| Period | Carrying value Beg. of period | Interest Paid to Bondholder | Interest Expense Recorded | Premium to be Amortized | Carrying value End of period |
|---|---|---|---|---|---|
| 1 | 194,679 | 9,000 | 7,787.16 | 1,212.84 | 193,466.16 |
| 2 | 193,466.16 | 9,000 | 7,738.65 | 1,261.35 | 192,204.81 |
| 3 | 192,204.81 | 9,000 | 7,688.19 | 1,311.81 | 190,893.00 |
