Olir Company issued 10-year bonds on January 1, 2016. The company’s year-end is December 31, and financial statements ar

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Olir Company issued 10-year bonds on January 1, 2016. Thecompany’s year-end is December 31, and financial statements areprepared annually. The amortization and interest schedule belowreflects the bond issuance and the subsequent interest payments
and charges.

Olir Company Issued 10 Year Bonds On January 1 2016 The Company S Year End Is December 31 And Financial Statements Ar 1 (46.79 KiB) Viewed 9 times

A. What amortization method is used in the amortizationschedule?
B. The bonds were issued at? Premium? Discount? FaceValue?
C. What is the effective interest rate of the bonds issued onJanuary 1, 2016?
D. On the basis of the schedule presented, what is thejournal entry to record the issuance of the bonds on January1, 2016?
Reference:
Lesson 5/6: Bonds Payable/Effective Interest Method
AMORTIZATION SCHEDULE INTEREST PAID INTEREST EXPENSE DATE 1/1/2016 12/31/2016 55,000.00 56, 610.00 12/31/2017 55,000.00 56,803.00 12/31/2018 55,000.00 57,019.00 12/31/2019 55,000.00 57,261.00 12/31/2020 55,000.00 57,533.00 12/31/2021 55,000.00 57,837.00 12/31/2022 55,000.00 58,177.00 12/31/2023 55,000.00 58,558.00 12/31/2024 55,000.00 58,985.00 12/31/2025 55,000.00 59,470.00 AMOUNT UNAMORTIZED 28,253.00 26,643.00 24,840.00 22,821.00 CARRYING VALUE 471,747.00 473,357.00 475,160.00 477,179.00 20,560.00 18,027.00 15,190.00 12,013.00 487,987.00 8,455.00 491,545.00 4,470.00 495,530.00 500,000.00 479,440.00 481,973.00 484,810.00