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E10-15 Preparing a Debt Payment Schedule with the Effective-Interest Method of Amortization, and Determining Reported Amounts LO10-3 Shuttle Company issued $1,350,000, three-year, 5 percent bonds
E10-15 Preparing a Debt Payment Schedule with the Effective-Interest Method of Amortization, and Determining Reported Amounts LO10-3 Shuttle Company issued $1,350,000, three-year, 5 percent bonds on January 1 , year 1 . The bond interest is paid each December 31 , the end of the company's fiscal year. The bond was sold to yield 4 percent. Use Table 9C.1, Table 9C.2. (Round time value factor to 4 decimal places.) Required: 1. Complete a bond payment schedule. Use the effective-interest amortization method. (Make sure that the unamortized discount/premium equals to ' 0 ' and the Net Liability equals to face value of the bond in the last period. Interest expense in the last period should be calculated as Cash Interest (+) discount / () premium amortized. Round intermediate and final answers to the nearest whole dollar.)
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