Home depot issued a $1,000,000, 6% bond, at 92 on January 1, 2018 maturing in 5 years, interest paid semiannually, on each June 30 and December 31. The market rate of interest on January l, was 8%. Required: Prepare an effective interest schedule for 2 years, 2018 and 2019. Prepare the journal entry to record the interest on June 30, 2018

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To prepare an effective interest schedule for 2018 and 2019 we need to calculate the interest expens... View the full answer