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On January 1, 2016, a company issues 3-year bonds with a face value of $200,000 and a stated interest rate of 7%. Because the market
On January 1, 2016, a company issues 3-year bonds with a face value of $200,000 and a stated interest rate of 7%. Because the market interest rate is 5%, the company receives $210,892 for the bonds Required Fill in the table assuming the company uses effective-interest bond amortization. (Round your answers to the nearest whole dollar.) Table Period Ended Bonds Payable Bonds Payable Carrying Value Amortized Cash Interest Paid Expense Premium Premium on s 200,000 S 10,892 $ 210,892 200,000 200,000 200,000 01/01/2016 12/31/201614,000 10,544 $ 14,000 14,000 3,456 200,000 14,000 200,000 14,000 200,000 12/31/2017 12/31/2018
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