Un June 30, 2020, the market interest rate is 7%. Dellaca Enterprises issues ($ 500,000) of (8

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Un June 30, 2020, the market interest rate is 7\%. Dellaca Enterprises issues \(\$ 500,000\) of \(8 \%, 20\)-year bonds at 110.625 . The bonds pay interest on June 30 and December 31. Dellaca amortizes bonds by the effective-interest method.

{Requirements}

1. Prepare a bond amortization table for the first four semi-annual interest periods.

2. Record issuance of the bonds on June 30, 2020, the payment of interest at December 31, 2020, and the semi-annual interest payment on June 30, 2021

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Financial Accounting

ISBN: 9780135433065

7th Canadian Edition

Authors: Walter Harrison, Wendy Tietz, C. Thomas, Greg Berberich, Catherine Seguin

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