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Bonds Issued at a Discount (Effective Interest) Theodore Corporation decided to issue long-term debt in order to pay off its short-term obligations. On January
Bonds Issued at a Discount (Effective Interest) Theodore Corporation decided to issue long-term debt in order to pay off its short-term obligations. On January 1, 2025, Theodore issued $850,000 in 8% bonds (payable on December 31, 2034) at 92. Interest is paid on June 30 and December 31. The market rate of interest is 10%. Required: Prepare the amortization table through December 31, 2026, using the effective interest rate method. If an amount box does not require an entry, leave it blank and if the answer is zero, enter "0". When required, round your answers to the nearest whole dollar. Theodore Corporation Amortization Table Period At issue 06/30/25 12/31/25 06/30/26 12/31/26 Cash Interest Discount on Discount on Carrying Value Payment Expense Bonds Payable Bonds Payable (Credit) (Debit) (Debit) Balance
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