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On January 1, 2017, Hooper Corporation issued 3-year bonds with a $40,000 face amount and a 6% annual coupon rate paid annually on December 31.
On January 1, 2017, Hooper Corporation issued 3-year bonds with a $40,000 face amount and a 6% annual coupon rate paid annually on December 31. The bonds were issued at $36,021 when the market rate of interest was 10%. Create the amortization table for the bonds using the effective interest method. Round all amounts to the nearest dollar. Save the table as a PDF file and attach it here. Use the following format:
Date | Cash | Interest Expense | Amortization | Carrying Value |
1/1/17 | ||||
12/31/17 | ||||
12/31/18 | ||||
12/31/19 |
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