On January 1, 2017, Gordon Activewear purchased a 12%, $40,000 Telus bond with a three-year term for
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On January 1, 2017, Gordon Activewear purchased a 12%, $40,000 Telus bond with a three-year term for $42,030. Interest is to be paid semiannually each June 30 and December 31. Gordon is planning to hold the bond until maturity. Record the entries on January 1, 2017, June 30, 2017, and December 31, 2019, using the amortization schedule provided below.
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Period Ending Jan. 1/17 June 30/17....... Dec. 31/17..... June 30/18.. Dec. 31/18..... June 30/19.............. Dec. 31/19.. Totals ******* Cash Interest Received $ 2,400 2,400 2,400 2,400 2,400 2,400 $14,400 Period Interest Income $ 2,102 2,087 2,071 2,055 2,037 2,018 $12,370 Premium Amort. $ 298 313 329 345 363 382 $2,030 Unamortized Premium $2,030 1,732 1,419 1,090 745 382 -0- Carrying Value $42,030 41,732 41,419 41,090 40,745 40,382 40,000
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Related Book For
Fundamental Accounting Principles Volume 2
ISBN: 9781259087363
15th Canadian Edition
Authors: Kermit Larson, Heidi Dieckmann
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