Question
On January 1, 2019, the Razn Company issued $ 20,000 in bonds. The bonds mature in 3 years and pay interest every December 31. CAUTION:
On January 1, 2019, the Razn Company issued $ 20,000 in bonds. The bonds mature in 3 years and pay interest every December 31. CAUTION: The company closes books on September 30 of each year. Due to a violent nervous breakdown, Mr. David Pryor, the company's controller, left the following amortization table unfinished (assume that the portion shown is correct): What is the nominal interest rate? (It is mandatory to present your computation to receive credit for your answer) 2. What is the interest rate in the market? (It is mandatory to present your computation to receive credit for your answer) 2. Complete the table that Pryor left unfinished. Post journal entries for Reason on the following dates: January 1, 2019 Sep 30, 2019 December 31, 2019
DATE | Cash Paid | Interest Expenses | Amortization | Balance Obligation |
1/1/19 | $19,040 | |||
31/12/19 | $2000 | $284 | ||
31/12/20 | ||||
31/12/21 |
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