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2. What amounts will be reported on the financial statements (statement of financial position, statement of earnings, and statement of cash flows) for year 1, year 2, and year 3? (Round intermediate and final answers to the nearest whole dollar.) Year 1 Year 2 Year 3 Interest expense Bonds payable Interest payment Issuance of bonds Payment of bonds
Assignment 4 (Chapters 9 and 10) A Saved Help Save & Exit Submit 11 Shuttle Company issued $1,350,000, three-year, 5 percent bonds on January 1, year 1. The bond interest is paid each December 31, the end of the company's fiscal year. The bond was sold to yield 4 percent. Use Table 9C.1. Table 9C.2. (Round time value factor to 4 decimal places.) 40 points Required: 1. Complete a bond payment schedule. Use the effective interest amortization method. (Make sure that the unamortized discount/premium equals to 'O' and the Net Liability equals to face value of the bond in the last period. Interest expense in the last period should be calculated as Cash Interest (+) discount /(-) premium amortized. Round intermediate and final answers to the nearest whole dollar.) 00:55:36 Bond Payment Schedule Cash Payment Interest Amortization Expense of Premium Date Carrying Amount 1/1/year 1 12/31/year 1 12/31/year 2 12/31/year 3 2. What amounts will be reported on the financial statements (statement of financial position, statement of earnings, and statement of cash flows) for year 1, year 2, and year 3? (Round intermediate and final answers to the nearest whole dollar.) Year 1 Year 2 Year 3 Interest expense Bonds payable