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Bonds Issued at a Discount (Effective Interest) Crafty Corporation received $570,789 of cash upon issuance of 600, $1,000 par value bonds. Each bond has
Bonds Issued at a Discount (Effective Interest) Crafty Corporation received $570,789 of cash upon issuance of 600, $1,000 par value bonds. Each bond has a stated rate of 9% and will mature on December 31, 2030, 7 years after the issuance of the bonds. Interest is paid annually on December 31. The market rate of interest is 10%. Required: Prepare the amortization table using the effective interest rate method. Note: If an amount box does not require an entry, inave it blank and if the answer is zero, enter "0" Round Interest Expense to the nearest whole dollar. And, round final year amount to complete the amortization. Crafty Corporation Amortization Table Period Cash Interest Discount on Payment Expense Bonds Payable Bonds Payable (Credit) (Debit) (Debit) Balance Discount on Carrying Value At issue 12/31/24 12/31/25 12/31/261 12/31/27 12/31/28 12/11/29 12/11/30
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