On June 30, 2017, the market interest rate is 7%. Dellaca Enterprises issues $500,000 of 8%, 20-year
Question:
On June 30, 2017, the market interest rate is 7%. Dellaca Enterprises issues $500,000 of 8%, 20-year bonds at 110.625. The bonds pay interest on June 30 and December 31. Dellaca amortizes bonds by the effective-interest method.
Requirements
1. Prepare a bond amortization table for the first four semi-annual interest periods.
2. Record issuance of the bonds on June 30, 2017, the payment of interest at December 31, 2017, and the semi-annual interest payment on June 30, 2018?
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Req 1 Amortization table 1 500000 110625 553125 Req 2 journal entries Journal DATE ACCOUNT TI...View the full answer
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Related Book For 
Financial Accounting
ISBN: 978-0134564142
6th Canadian edition
Authors: Walter Jr. Harrison, Charles T. Horngren, C. William Thomas, Greg Berberich, Catherine Seguin
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