Cole Inc. prepares the following effective interest amortization table for its bonds payable. Interest Payment Date Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 Dec 31, 2025 Dec 31, 2026 Dec 31, 2027 Dec 31, 2028 Dec 31, 2029 Dec 31, 2030 Cash Payment Amount $87,185 $840,000 $927,185 Decrease in Interest Expense Discount $840,000 $911,169 $71,169 $840,000 $916,151 $76,151 $840,000 $921,481 $81,481 $840,000 $927,185 $87,185 $840,000 $933,288 $93,288 $840,000 $939,818 $99,818 $474,210 $840,000 $106,805 $367,404 $840,000 $114,282 $253,123 $130,841 $0 $946,805 $954,282 Discount $912,133 $835,982 $754,501 $667,316 $574,028 $840,000 $962,281 $122,281 $840,000 $970,841 $130,841 Book Value $13,087,867 $13,164,018 How much CASH will the company pay related to bond interest in 2024? $13,245,499 $13,332,684 $13,425,972 $13,525,790 $13,632,596 $13,746,877 $13,869,159 $14,000,000
Cole Inc. prepares the following effective interest amortization table for its bonds payable. Interest Payment Date Dec 31, 2021 Dec 31, 2022 Dec 31, 2023 Dec 31, 2024 Dec 31, 2025 Dec 31, 2026 Dec 31, 2027 Dec 31, 2028 Dec 31, 2029 Dec 31, 2030 Cash Payment Amount $87,185 $840,000 $927,185 Decrease in Interest Expense Discount $840,000 $911,169 $71,169 $840,000 $916,151 $76,151 $840,000 $921,481 $81,481 $840,000 $927,185 $87,185 $840,000 $933,288 $93,288 $840,000 $939,818 $99,818 $474,210 $840,000 $106,805 $367,404 $840,000 $114,282 $253,123 $130,841 $0 $946,805 $954,282 Discount $912,133 $835,982 $754,501 $667,316 $574,028 $840,000 $962,281 $122,281 $840,000 $970,841 $130,841 Book Value $13,087,867 $13,164,018 How much CASH will the company pay related to bond interest in 2024? $13,245,499 $13,332,684 $13,425,972 $13,525,790 $13,632,596 $13,746,877 $13,869,159 $14,000,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 56BE: Brief ExerciseBonds Issued at a Premium (Effective Interest) Refer to the information above for...
Related questions
Question
9
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning