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Mazeltov Corporation issued $100,000 3-year, 10% stated rate bonds on January 1, 2004. The bonds pay interest annually and sold at a market rate of

Mazeltov Corporation issued $100,000 3-year, 10% stated rate bonds on January 1, 2004. The bonds pay interest annually and sold at a market rate of 12%.

a. Calculate the issue price of the bonds.

b. Prepare an amortization schedule for the bonds

Payment date

Carrying value, beginning.

Cash interest

Interest expense

amortization

Caring value, ending.

6/30/04

12/31/04

6/30/05

12/31/05

6/30/06

12/32/06

c. record the interest expense entry for the 6/30/05 interest payment:

accounts

debits

credits

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