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Calculate the proper amount of depreciation expense to record for each asset, for each year 2019 and 2020. PROBLEM # 5-30 POINTS Hadley, Inc.
Calculate the proper amount of depreciation expense to record for each asset, for each year 2019 and 2020. PROBLEM # 5-30 POINTS Hadley, Inc. issued $400,000 face value bonds payable on September 1, 2019 at a price of $369,112. The bonds carried a stated annual interest rate of 8%, payable semi-annually on September 1 and March 1 of each year. The bonds mature in five years, on August 31, 2024. On September 1, 2019 the effective (market) interest rate was 10%. On March 1, 2021, after recording interest and amortization, Hadley called in 40% of the outstanding bonds, at a call price of 99. Hadley uses the effective interest method to account for the bonds. REQUIRED: A) B) Prepare an amortization table for the bonds, from September 1 2019 through September 1, 2022. Prepare all of the journal entries that Hadley should record for the bonds, from September 1, 2019 through March 1, 2022. Hadley uses a December 31 year-end for financial statements.
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