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2. Mazeltax Corporation issued $100,000 3-year, 10% stated rate bonds on January 1, 2004. The bonds pay interest semi-annually and were sold when the market
2. Mazeltax Corporation issued $100,000 3-year, 10% stated rate bonds on January 1, 2004. The bonds pay interest semi-annually and were sold when the market rate was 8%. a Calculate the issue price of the bonds. b. Prepare an amortization schedule for the bonds (use the table below). Payment Carrying Value, Cash Interest Amortization Carrying Value, Date beginning Interest Expense ending 6/30/04 12/31/04 6/30/05 12/31/05 6/30/06 12/31/06 Record the interest expense entry for the 6/30/05 interest payment: Accounts Debits Credits
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