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Bond investment Disocnt Amortization Schedule - Tudor Company acquired $500,000 of Carr Corporation bonds for $487,706.69 on January 1, 2018. The bonds carry an 11%
Bond investment Disocnt Amortization Schedule - Tudor Company acquired $500,000 of Carr Corporation bonds for $487,706.69 on January 1, 2018. The bonds carry an 11% stated interest rate, pay interest semiannually on January 1 and July 1, were issued to yieled 12%, and are due January 1, 2021.
1. Prepare an investment interest income and discount amorization schedule using the:
a. Straight-line method
b. effective interest mehtod.
2. Prepare the July 1, 2020, journal entries to record the interest income under both methods.
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