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Ch.14 ssignment: Grove Corporation issued $800,000 of 8% bonds on January 1, 2010, due on January 1, 2015. The interest is to be paid twice
Ch.14 ssignment: Grove Corporation issued $800,000 of 8% bonds on January 1, 2010, due on January 1, 2015. The interest is to be paid twice a year on July 1 and January 1. The bonds were sold to yield 10% effective annual interest. Grove Corporation closes its books annually on December 31. Instructions: (A) Complete the following amortization schedule for the dates indicated. Use the effective interest method. Carrying Amount Credit Cash Interest Bond Discount of Bonds Expense 1/1/ 2010 1/7/2010 1/1/2011 (B) 1. Prepare the entry on date of issue 1/1/2010. 2. Prepare the journal entry on 1/7/2010. 3. Prepare the adjusting entry at December 31, 2010
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