GIT, Inc., issued $600,000 of 5%, 12-year bonds payable at a price of 77 on March 31,

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GIT, Inc., issued $600,000 of 5%, 12-year bonds payable at a price of 77 on March 31, 2010. The market interest rate at the date of issuance was 8%, and the GIT bonds pay interest semiannually.
1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. Round amounts to the nearest dollar.
2. Record GIT, Inc.’s issuance of the bonds on March 31, 2010, and payment of the first semiannual interest amount and amortization of the bond discount on September 30, 2010. Explanations are not required.

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Financial accounting

ISBN: 978-0136108863

8th Edition

Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas

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