Question

On January 1, 2016, Parker Company issued bonds with a face value of $64,000, a stated rate of interest of 13 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 15 percent at the time the bonds were issued. The bonds sold for $59,709. Parker used the effective interest rate method to amortize the bond discount

​a. Prepare an amortization table​ from 2016- 2020 b. What is the interest expense that would appear on the 2019 income statement?
c.What is the carrying value that would appear on the 2019 balance sheet?
d.What is the amount of cash outflow for interest that would appear in the operating activities section of the 2019 statement of cash flows?

Answer 1

The answer and procedures of the exercise are attached in the following archives.

Explanation

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