Question
On December 31, 2016, when the market interest rate is 14%,Vincent Realty issues $500,000 of 15.25%, 10-year bonds payable. The bonds pay interest semiannually. Vincent
On December 31, 2016, when the market interest rate is 14%,Vincent Realty issues $500,000 of 15.25%, 10-year bonds payable. The bonds pay interest semiannually. Vincent RealtyVincent Realty received $532,896 in cash at issuance.
Requirements 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round all numbers to the nearest whole dollar.)
2. Using the amortization table prepared in Requirement 1, journalize issuance of the bonds and the first two interest payments.
Requirement 1. Prepare an amortization table using the effective interest amortization method for the first two semiannual interest periods. (Round all numbers to the nearest whole dollar.)
Interest Carrying
Cash Paid Expense Amortized Amount
12/31/2016
06/30/2017
12/31/2017
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