Question: Assume the same information as E14-6B. E14-6B, Clark Company sells 8% bonds having a maturity value of $5,000,000 for $5,421,236. The bonds are dated January

Assume the same information as E14-6B.

E14-6B, Clark Company sells 8% bonds having a maturity value of $5,000,000 for $5,421,236. The bonds are dated January 1, 2014, and mature January 1, 2019. Interest is payable annually on January 1.

Instructions

Set up a schedule of interest expense and premium amortization under the effective-interest method.

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