Berkley Corporation issued bonds and received cash in full

for
Berkley Corporation issued bonds and received cash in full for the issue price. The bonds were
dated and issued on January 1, 2009. The stated interest rate was payable at the end of each
year. The bonds mature at the end of four years. The following schedule has been completed
(amounts in thousands):Required:1. Complete the amortization schedule.2. What was the
maturity amount of the bonds?3. How much cash was received at the date of issuance (sale) of
the bonds?4. Was there a premium or a discount? If so, which and how much?5. How much
cash will be disbursed for interest each period and in total for the full life of the bond issue?6.
What method of amortization is being used? Explain.7. What is the stated rate of interest?8.
What is the effective rate of interest?9. What amount of interest expense should be reported on
the income statement each year?10. Show how the bonds should be reported on the balance
sheet at the end of each year (show the last year immediately before retirement of thebonds).
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Berkley Corporation issued bonds and received cash in full for
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