7252569-MIdterm-1 (dragged) 32

7252569-MIdterm-1 (dragged) 32 - Bond Interest Payable Bond...

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Kieso, Weygandt, Warfield, Young, Wiecek Intermediate Accounting, Eighth Canadian Edition 14-16 ILLUSTRATION 14-2 BOND AMORTIZATION METHODS Computation of Amortization—Straight-Line Method Bond Discount Number of Bond or Premium y I n t e r e s t = A m o r t i z a t i o n P e r i o d s Interest Payable + Discount Interest - P r e m i u m E x p e n s e A m o r t i z a t i o n = Constant Amount Constant Amount Constant Amount Computation of Amortization—Effective Interest Method
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Unformatted text preview: Bond Interest Payable Bond Interest Expense Face Stated Carrying Value Effective Amortization Amount u Interest ± o f b o n d s u Interest = Amount of Bonds Rate Beginning of P e r i o d Constant Amount Premium-Decreasing Amount Decreasing Amt. D i s c o u n t-I n c r e a s i n g A m o u n t I n c r e a s i n g A m t ....
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