Question

Chapter 09 Homework X + ucation.com/flow/connect Saved Help Save & Exit 5 Homework Check my w On January 1, 2021, Universe of Fun issues $900,000, 8% bonds that mature in 10 years. The market interest rate for bonds of similar risk and maturity is 9%, and the bonds issue for $841,464. Interest is paid semiannually on June 30 and December 31. Required: 1. Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) Date Cash Paid Interest Expense Change in Carrying Value Carrying Value ences < Prev 13 14 of 14 !!! Next > e to search I V U T o DFG ATKI:

Answer 1

1)	Complete the first three rows of an amortization schedule :
	Date	Cash paid	Interest expense	Change in carrying value	Carrying value
	01-01-2021				$ 841,464
	06/30/2021	$ 36,000 {900,000*4%}	$ 37,866 {841,464*4.5%}	$1,866 {37,886 - 36,000}	$843,330 {841,464+1866}
	12/31/2021	$ 36,000 {900,000*4%}	$ 37,950 {843,330*4.5%}	$1,950 {37,950 - 36,000}	$845,280 {843,330+1950}

here

for 6 month period

1) 8% /2 = 4 % ,  

2) 9% /2 = 4.5 %