Business, 17.06.2020 18:57 zhellyyyyy

On January 1, Year 1, Hart Company issued bonds with a face value of $116,000, a stated rate of interest of 9 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 8 percent at the time the bonds were issued. The bonds sold for $120,632. Hart used the effective interest rate method to amortize the bond premium. Required:
a. Prepare an amortization table.
b. What is the carrying value that would appear on the Year 4 balance sheet?
c. What is the interest expense that would appear on the Year 4 income statement?
d. What is the amount of cash outflow for interest that would appear in the operating activities section of the Year 4 statement of cash flows?

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On January 1, Year 1, Hart Company issued bonds with a face value of $116,000, a stated rate of inte...

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