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Exercise 2 (15 points On January 1, 2018, Newton Corporation issued $700,000, 5%, 10-year bond for cash proceeds of $557,025. The bonds were sold to

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Exercise 2 (15 points On January 1, 2018, Newton Corporation issued $700,000, 5%, 10-year bond for cash proceeds of $557,025. The bonds were sold to yield an market-interest rate of 8%. Interest is paid semiannually on June 30 and December 31. The company uses the effective-interest method of amortization. Instructions (a) Prepare a bond discount amortization schedule, which shows the amortization of discount for the first two interest payment dates. (Round to the nearest dollar.) Date Interest to be Interest paid (Issue Date) Unamortized Carrying Value, Discount AmortizationDiscount Expense 1/01/18 6/30/18 12/31/18 (b) Prepare the journal entry that Timber Corporation would make on January 1,2018

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