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Frankenstein Inc. issued $1,000,000, 10%, 10-year bonds on December 31, 2020. The current market rate is 12%. The corporation uses the effective interest amortization method.
Frankenstein Inc. issued $1,000,000, 10%, 10-year bonds on December 31, 2020. The current market rate is 12%. The corporation uses the effective interest amortization method. Interest is payable semiannually on June 30 and December 31. Show the values you enter in your calculator for N, 1/Y, PMT, FV. If you are using the PV tables, show the values for n, i and the PV factor Part 1 Prepare an amortization schedule for the first four payment periods using the format shown below. Round all numbers in the table to the nearest dollar. Period Ending Cash Interest Paid Interest Expense Discount Amortized Unamortized Discount Carrying Value of Bond Dec 31, 2020 Jun 30, 2021 Dec 31, 2021 Jun 30, 2022 Dec 31, 2022 Part 2 Prepare a journal entry to record the interest expense on June 30, 2021
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