On January 1, 2016, Parker Company issued bonds with a face value of $80,000, a stated rate of interest of 8%, and a 5-year term to maturity. Interest is payable cash on December 31 of each year. The effective rate of interest was 9% at the time the bonds were issued. The bonds sold for $76,888. Parker used the effective interest rate method to amortize the bond discount.
Prepare an amortization table
What items in the table would appear on the 2019 balance sheet?
What items in the table would appear on the 2019 income statement?
What items in the table would appear on the 2019 statement of cash flows?