Villarente company issued 5-year 200000 face value bonds at

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Villarente Company issued 5-year $200,000 face value bonds at 95 on January 1, 2012. The stated interest rate on these bonds is 9%, and the effective interest rate is 10.33%. Use the effective interest rate method to complete the amortization schedule below.



Cash 

Payment

Interest Expense

Discount Amortization

Carrying 

Value

January 1, 2012

 

 

 

 

December 31, 2012

 

 

 

 

December 31, 2013

 

 

 

 

December 31, 2014

 

 

 

 

December 31, 2015

 

 

 

 

December 31, 2016

 

 

 

 

Totals

 

 

 

 

Reference no: EM13452253

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