Debt Issued at a Premium Straight Line On January 1 2020 Iro

Debt Issued at a Premium (Straight Line) On January 1, 2020, Ironman Steel issued $350,000, 8-year bonds for $364,000. The stated rate of interest was 11% and interest is paid annually on December 31 Required Prepare the amortization table for Ironman Steel\'s bonds. If required, round your answers to nearest whole value. If an amount box does not require an entry, leave it blank and if the answer is zero, enter \"O\". Tronman Steel Amortization Table Period Cash Payment (Credit) Interest Expense (Debit) Premium on Bonds Payable (Debit) Premum on Bonds Payable Balance Carrying Value At issue 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 12/31/25 12/31/26 12/31/27

Solution

Amortization table :

Period	Cash payment	Interest expense	Premium on bonds payable	Premium on bonds payable balance	Carrying value
At issue					364000
12/31/20	38500	36750	1750	12250	362250
12/31/21	38500	36750	1750	10500	360500
12/31/22	38500	36750	1750	8750	358750
12/31/23	38500	36750	1750	7000	357000
12/31/24	38500	36750	1750	5250	355250
12/31/25	38500	36750	1750	3500	353500
12/31/26	38500	36750	1750	1750	351750
12/31/27	38500	36750	1750	0	350000