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Ayayai Co. sells $386,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1 The due date of
Ayayai Co. sells $386,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1 The due date of the bonds is June 1, 2021. The bonds yield 8%. On October 1, 2018, Ayayai buys back $123,520 worth of bonds for $129,520 (includes accrued interest). Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization, Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.) Schedule of Bond Discount Amortization Effective Interest Method Bonds Sold to Yield Carrying Cash Interest Amount of Discount paid Amortized Bonds Date Expense 12/1/18 12/1/19 6/1/20 12/1/20 6/1/21 Difference due to rounding
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