Sciamanna Corporation issued $500,000 of 6%, 10-year bonds payable on January 1, 2022. The market interest rate at the date of issuance was 4%, and the bonds pay interest semiannually (on June 30 and December 31). Sciamanna Corporation's year-end is June 30. Sciamanna prepared an effective-interest amortization table for the bonds through the first three interest payments as follows: (Click the icon to view the amortization schedule.) Read the requirements. 1. How much cash did Sciamanna Corporation borrow on January 1, 2022? How much cash will Sciamanna Corporation pay back at maturity? On January 1, 2022, Sclamanna borrowed At maturity Sciamanna will pay back Reference Semiannual Interest Date: Jan 1, 2022 Jun 30, 2022 Dec 31, 2022 Jun 30, 2023 Interest Payment 15,000 15,000 15,000 CITE Interest Premium Expense Amortization 11,635 11,568 11,499 Print 3,365 3,432 3,501 Done Premium Account Balance 81,757 78,392 74,960 71,459 Bond Carrying Amount 581,757 578,392 574,960 571,459 X

Sciamanna Corporation issued $500,000 of 6%, 10-year bonds payable on January 1, 2022. The market interest rate at the date of issuance was 4%, and the bonds pay interest semiannually (on June 30 and December 31). Sciamanna Corporation's year-end is June 30. Sciamanna prepared an effective-interest amortization table for the bonds through the first three interest payments as follows: (Click the icon to view the amortization schedule.) Read the requirements. 1. How much cash did Sciamanna Corporation borrow on January 1, 2022? How much cash will Sciamanna Corporation pay back at maturity? On January 1, 2022, Sclamanna borrowed At maturity Sciamanna will pay back Reference Semiannual Interest Date: Jan 1, 2022 Jun 30, 2022 Dec 31, 2022 Jun 30, 2023 Interest Payment 15,000 15,000 15,000 CITE Interest Premium Expense Amortization 11,635 11,568 11,499 Print 3,365 3,432 3,501 Done Premium Account Balance 81,757 78,392 74,960 71,459 Bond Carrying Amount 581,757 578,392 574,960 571,459 X

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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