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ok n June 1 , 2 0 2 2 , LASTT Company sold 4 0 0 , 0 0 0 in long - term bonds
ok n June LASTT Company sold in longterm bonds for The bonds
ill mature in years and have a stated interest rate of and a yield rate of The bonds
ay interest annually on May of each year. The bonds are to be accounted for under the
ffectiveinterest method.
instructions
a Construct a bond amortization table for this problem to indicate the amount of interest expense
and discount amortization at each May Include only the first four years. Make sure all
columns and rows are properly labeled. Round to the nearest dollar.
b Assuming that interest and discount amortization are recorded each May prepare the
adjusting entry to be made on December Round to the nearest dollar.
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