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Company: XYZ Company Date of bonds: January 1, 2020 Term: 5 years Face (Par) Value: $100,000 Stated interest rate: 8% Interest payment dates on January
Company: XYZ Company Date of bonds: January 1, 2020 Term: 5 years Face (Par) Value: $100,000 Stated interest rate: 8% Interest payment dates on January 1 and July 1 2. The company uses the effective interest method of amortization. Prepare a schedule to amortize the bond premium or discount from January 1, 2020 to December 31, 2020 (January 1, 2021) and make the journal entries for the July 1, 2020 and December 31, 2020 (Hint: accrued interest)
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