Question: Shuttle Company issued 1 000 000 three year 5 percent bonds

Shuttle Company issued $ 1,000,000, three- year, 5 percent bonds on January 1, 2013. The bond interest is paid each December 31. The bond was sold to yield 4 percent.
Required:
1. Complete a bond payment schedule. Use the effective- interest method.
2. What amounts will be reported on the financial statements (statement of financial position, statement of earnings, and statement of cash flows) for 2013, 2014, and 2015?

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  • CreatedAugust 04, 2015
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