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On January 1, 2015, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate of 7 percent paid annually
On January 1, 2015, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate of 7 percent paid annually on December 31, and a maturity date of December 31, 2017. On the issue date, the market interest rate was 6.25 percent, so the total proceeds from the bond issue were $101,995. Methodical uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. |
Required: 1. Prepare a bond amortization schedule. Changes During the Period Ending Bond Liability Balances Period Cash Premium Interest Bonds Premium Se Payable on Bonds Carrying PayableValue EndedPaid Amortized Expen 01/01/15 12/31/15 12/31/16 12/31/17
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