Question: 1. value: O.71 points Problem 10-228 [LO 10-S2] On January 1, 2016, a company issues 3-year bonds with a face value of $120,000 and a
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1. value: O.71 points Problem 10-228 [LO 10-S2] On January 1, 2016, a company issues 3-year bonds with a face value of $120,000 and a stated interest rate of 7%. Because the market interest rate is 5%, the company receives $126,535 for the bonds. Required: Fill in the table assuming the company uses effective-interest bond amortization. (Round your answers to the nearest whole dollar.) Table Amortized Premium Carrying Value Period Cash Interest Bonds Premium on Bonds Payable Ended Paid Expense Payable 01/01/2016 12/31/2016 12/31/2017 12/31/2018
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