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On january 1, 2016, Hutton Corp issued $200,000 of 15 year, 14% bonds pay ale for $261,489, yielding an effective interest rate of 10%. Interest
On january 1, 2016, Hutton Corp issued $200,000 of 15 year, 14% bonds pay ale for $261,489, yielding an effective interest rate of 10%. Interest is payable semiannually on June 30 and December 31.
fetero on and me 30 2014. december 31, 2016 Use the effecterest rate memo De a. Show computations to confirm the issue price of $261,489
b. Prepare Journal Entries to record the bond issuance, semiannual interest payment and premoum amortixation on June 30, 2016, and semiannual interest payment amortixaiton on December 31, 2016. Use the effectivr interest rate method.
c. Post the journal entries from part b to their respective t-accounts
d. Record each of the transactions from part b in the fiancial statement effects template
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