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I need all of the answers, thanks! Pina Co. sells $423,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1
I need all of the answers, thanks!
Pina Co. sells $423,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 10%. On October 1, 2018, Pina buys back $131,130 worth of bonds for $136,130 (includes accrued interest). Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.) Schedule of Bond Discount Amortization Effective-Interest Method Bonds Sold to Yield Cash Paid Interest Expense Date Carrying Amount of Bonds Discount Amortized Date 6/1/17 $ 27340 450340 12/1/17 25380 22517 24477 447477 6/1/18 25380 22374 21471 444471 12/1/18 25380 22224 18315 441315 6/1/19 25380 12/1/19 25380 6/1/20 25380 12/1/20 25380 6/1/21 25380 * Difference due to roundingStep by Step Solution
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