Question

# Quatro Co. issues bonds dated January 1, 2016, with a par value of \$790,000. The bonds’...

Quatro Co. issues bonds dated January 1, 2016, with a par value of \$790,000. The bonds’ annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 8%, and the bonds are sold for \$810,694. 3. Prepare an amortization table for these bonds; use the straight-line method to amortize the premium. (Round your intermediate calculations to the nearest dollar amount.)

 Bond premium amortization table using straight line method Date Interest payment [4.5% * \$790000] Interest Expense (B-D) Amortization of bond premium [\$20694/6 ] Credit balance in Bond Premium account Credit balance in Bond Payable account Book value of the bond A B C D E F G Jan.1,2016 \$20,694 \$790,000 \$810,694 June 30,2016 \$35,550 \$32,101 \$3,449 \$17,245 \$790,000 \$807,245 Dec.31,2016 \$35,550 \$32,101 \$3,449 \$13,796 \$790,000 \$803,796 June 30,2017 \$35,550 \$32,101 \$3,449 \$10,347 \$790,000 \$800,347 Dec.31,2017 \$35,550 \$32,101 \$3,449 \$6,898 \$790,000 \$796,898 June 30,2018 \$35,550 \$32,101 \$3,449 \$3,449 \$790,000 \$793,449 Dec.31,2018 \$35,550 \$32,101 \$3,449 \$0 \$790,000 \$790,000

#### Earn Coins

Coins can be redeemed for fabulous gifts.