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Mateo Company issued $500,000, 15-year, semi-annual bonds on January 1, 2022. The bond carried a rate of 12% while the market rate at the
Mateo Company issued $500,000, 15-year, semi-annual bonds on January 1, 2022. The bond carried a rate of 12% while the market rate at the time was 10%. REQUIRED: Use the Present Value Tables I uploaded to answer (1) (1) Determine amount of cash received on July 1 (MUST Show the 4-step process to show work). Prepare the necessary journal entry. (2) Determine the amount of interest expense and amortization on 6/30/22 using straight-line method. Prepare the necessary journal entry. (3) Determine the amount of interest expense and amortization on 12/31/22, using straight-line method. Prepare the necessary journal entry. (4) Determine the amount of interest expense and amortization on 6/30/22 using effective interest method. Prepare the necessary journal entry. (5) Determine the amount of interest expense and amortization on 12/31/22, using effective interest method. Prepare the necessary journal entry.
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