Consider a 10 million issue of 5 year 6 debentures when
Consider a $10 million issue of 5-year, 6% debentures when the market interest rate was 10%. It was issued on January 1, 20X0.
1. Prepare a table showing the interest expense and the unamortized discount and ending liability balance for each semiannual period. Use Exhibit as an example.
2. Prepare the journal entry for recording interest for the 6-month period ended when the bond matures on December 31, 20X4.
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