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6 Diaz Company issued bonds with a $132,000 face value on January 1, Year 1. The bonds had a 6 percent stated rate of interest
6 Diaz Company issued bonds with a $132,000 face value on January 1, Year 1. The bonds had a 6 percent stated rate of interest and 10 year term. Interest is paid in cash annually, beginning December 31, Year 1. The bonds were issued at 98. The straight-line metho used for amortization, Required 2. Use a fancial statements modelike the one shown next to demonstrate how (1) the January 1. Year 1, bond issue and (2) the December 31. Your recognition of interest expense, including the amortization of the discount and the cash payment, affect the company financial statements (Use for increase or- for decrease in the Statement of Cash Flows column, use the initials Oat designate operating activity, IA for investing activity, and FA for financing activity. Not all cells require input.) Efect of Transor Financial Statements Balance sheet Income Statement Stockholders Revenue Expense - Net Income Statement of Cash Flows
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