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A partial bond amortization schedule for $2-million, 5-year bonds is presented below: (a) Fill in the missing words or amounts for items [1] through [6]. (b) What is the bonds' face value? (c) What is the bonds' contractual interest rate?

A partial bond amortization schedule for $2-million, 5-year bonds is presented below:
A partial bond amortization schedule for $2-million, 5-year bonds is

(a) Fill in the missing words or amounts for items [1] through [6].
(b) What is the bonds' face value?
(c) What is the bonds' contractual interest rate? The market interest rate?
(d) Explain why interest expense differs from the amount of interest paid.

Transcribed Image Text:

Semi-Annual Interest 12] Bond Amortized Cost $1,912,479 1,920,291 Interest Interest Period21 Amortization Issue Date 1 (Apr. 30) 2 (Oct. 31 $40,000 40,000 14] $48,007 $7,812

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a 1 Discount 2 Payment 3 Expense 4 Interest expense 4…View the full answer


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Accounting Principles Part 3

Accounting Principles Part 3

ISBN: 978-1118306802

6th Canadian edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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Question Details
Chapter # 15- Non-Current Liabilities
Section: Brief Exercises
Problem: 6
Posted Date: March 31, 2017 00:59:16
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