On September 30, 2017 when the market interest rate is 6 percent, LeHigh Ltd. Issues $8,000,000 of

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On September 30, 2017 when the market interest rate is 6 percent, LeHigh Ltd. Issues $8,000,000 of 8 percent, 20-year bonds for $9,849,182. The bonds pay interest on March 31 and September 30. Lehigh Ltd. amortizes a bond premium by the effective-interest method.

Required

1. Prepare an amortization table for the first four semi-annual interest periods. Follow the format of Panel B in Exhibit 15-7 on page 854.

2. Record the issuance of the bonds on September 30, 2017, the accrual of interest at December 31, 2017, and the semi-annual interest payment on March 31, 2018.

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Related Book For  answer-question

Horngrens Accounting

ISBN: 978-0133855388

10th Canadian edition Volume 2

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood

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