Completing a Bond Amortization Table (Effective Interest Rate Method) MacBride Enterprises sold $100,000 of bonds on Jan

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Completing A Bond Amortization Table Effective Interest Rate Method Macbride Enterprises Sold 100 000 Of Bonds On Jan 1 (107.32 KiB) Viewed 56 times

Completing a Bond Amortization Table (Effective Interest Rate Method) MacBride Enterprises sold $100,000 of bonds on January 1, 2024. A portion of the amortization table appears below. Premium on Bonds Premium on Bonds Payable (Debit) Payable Balance Period At issue 6/30/24 12/31/24 6/30/25 12/31/25 Required: Cash Payment Interest Expense (Credit) (Debit) Period $3,000 3,000 3,000 At issue ? 1. Indicate the stated annual interest rate on these bonds. % 6/30/24 12/31/24 6/30/25 12/31/25 $2,590 2,579 2,569 ? Cash Payment (Credit) $3,000 3,000 3,000 2. Calculate the effective annual interest rate on these bonds. Round your answer to one decimal place. % Interest Expense $410 (Debit) 421 $2,590 2,579 2,569 431 3. Determine the interest expense and premium amortization for the interest period ending December 31, 2025. If required, round your answers to the nearest whole dollar. ? Premium on Bonds Payable (Debit) $3,585 3,175 2,754 2,323 $410 ? 421 431 Carrying Value $103,585 103,175 102,754 102,323 Premium on Bonds Payable Balance $3,585 3,175 2,754 2,323 ? Carrying Value $103,585 103,175 102,754 102,323