On December 31, 2025, when the market interest rate is 14%, Cooley Realty issues ($500,000) of 11.25%,
Question:
On December 31, 2025, when the market interest rate is 14%, Cooley Realty issues \($500,000\) of 11.25%, 10-year bonds payable. The bonds pay interest semiannually.
The present value of the bonds at issuance is \($426,956.
Requirements
1.\) Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round to the nearest dollar.)
2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments.
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Related Book For
Horngrens Accounting The Financial Chapters
ISBN: 9780137884858
14th Edition
Authors: Brenda Mattison, Tracie Miller-Nobles
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