Question: Hi there, i'm currently working on Effective Interest Method and amortizing bonds, and i am a bit stuck on finding the interest revenue for each
Hi there, i'm currently working on Effective Interest Method and amortizing bonds, and i am a bit stuck on finding the interest revenue for each period. Her is the question.
On January 1, 2016, the Ruffin Corporation received $40,000 face value, 4%, four-year notes that mature on December 31, 2019. Ruffin will receive interest semiannually on June 30 and December 31. On the date Ruffin received the bonds, the market rate of interest was 6%. The company's fiscal year ends on December 31. Prepare an amortization schedule over the four-year period using the effective interest rate method. Thanks.
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