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How do you get the Carrying amount of Bonds? Bridgeport Co. is building a new hockey arena at a cost of $2,560,000. It received a
How do you get the Carrying amount of Bonds?
Bridgeport Co. is building a new hockey arena at a cost of $2,560,000. It received a downpayment of $450,000 from local businesses to support the project, and now needs to borrow $2,110,000 to complete the project. It therefore decides to issue $2,110,000 of 12%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 11%. (b) Prepare a bond amortization schedule up to and including January 1, 2023, using the effective interest method. (Round answers to O decimal places, e.g. 38,548.) Cash Interest Expense Premium Amortization Carrying Amount of Bonds Paid $ $ $ $ 253,200 245,767 7,433 253,200 244,949 8,251 253,200 244,042 9,158 253,200 243,034 10,166 e Textbook and MediaStep by Step Solution
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