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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 |
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12/31/04 |
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6/30/05 |
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12/31/05 |
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6/30/06 |
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12/32/06 |
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c. record the interest expense entry for the 6/30/05 interest payment:
accounts | debits | credits |
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