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Adjust FVA at Year$-$End

Entries for TS: Effective Interest Method

Note: When answering the following questions, round answers to the nearest whole dollar.

Amortization Schedule

Journal Entries in Year $1,$ Journal Entries in Year $2$

a$.$ Prepare a bond amortization schedule for the life of the bonds using the effective interest method.

$\backslash$table$[[$Date$,\backslash$table$[[$Stated$],[$Interest$]],\backslash$table$[[$Market$],[$Interest$]],\backslash$table$[[$Discount$],[$Amortization$]],\backslash$table$[[$Bond$],[$Amortized Cos$]],$ost$],[$Jul$.1,$ Year $1,,,,$$$,0],[$Jan$.1,$ Year $2,$$$,$$$,0$$$,,0],[$Jul$.1,$ Year $2,0,,0,,0],[$Jan$.1,$ Year $3,0,,0,,0],[$Jul$.1,$ Year $3,0,,0,,0],[$Jan$.1,$ Year $4,0,,0,,0],[$Jul$.1,$ Year $4,0,,0,,0]]$