Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity: Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 01/01/2021 332,789 06/30/2021 17,500 19,967 2,467 335,256 12/31/2021 17,500 20,115 2,615 337,871 06/30/2022 17,500 20,272 2,772 340,643 12/31/2022 17,500 20,439 2,939 343,582 06/30/2023 17,500 20,615 3,115 346,697 12/31/2023 17,500 20,803 3,303 350,000 THA issued the bonds for:
Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity: Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 01/01/2021 332,789 06/30/2021 17,500 19,967 2,467 335,256 12/31/2021 17,500 20,115 2,615 337,871 06/30/2022 17,500 20,272 2,772 340,643 12/31/2022 17,500 20,439 2,939 343,582 06/30/2023 17,500 20,615 3,115 346,697 12/31/2023 17,500 20,803 3,303 350,000 THA issued the bonds for:
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 9RE
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Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity:
| Date | Cash Paid | Interest Expense |
Increase in Carrying Value |
Carrying Value |
| 01/01/2021 | 332,789 | |||
| 06/30/2021 | 17,500 | 19,967 | 2,467 | 335,256 |
| 12/31/2021 | 17,500 | 20,115 | 2,615 | 337,871 |
| 06/30/2022 | 17,500 | 20,272 | 2,772 | 340,643 |
| 12/31/2022 | 17,500 | 20,439 | 2,939 | 343,582 |
| 06/30/2023 | 17,500 | 20,615 | 3,115 | 346,697 |
| 12/31/2023 | 17,500 | 20,803 | 3,303 | 350,000 |
THA issued the bonds for:
Multiple Choice
-
$350,000.
-
$332,789.
-
$455,000.
-
Cannot be determined from the given information.
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