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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 6 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 6 percent paid annually on December 31, and a maturity date of December 31, 2017. On the issue date, the market interest rate was 5.20 percent, so the total proceeds from the bond issue were $102,169. 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 Ended Cash Paid Premium Amortized and spenst Payatse sono carrying Interest Expense Bonds Payable Premium on Bonds Payable Carrying Value 01/01/15 12/31/15 12/31/16 12/31/17
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