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On January 1, 2020, Sheridan Corporation issued $810,000,6%,5-year bonds for $745,200. The bonds were sold to yield an effective-interest rate of 8%. Interest is paid
On January 1, 2020, Sheridan Corporation issued $810,000,6%,5-year bonds for $745,200. The bonds were sold to yield an effective-interest rate of 8%. Interest is paid annually on January 1. The company uses the effective-interest method of amortization (a) Your answer has been saved. See score details after the due date. Prepare a bond discount amortization schedule which shows the amortization of discount for the first two interest payment dates. (Round answers to 0 decimal places, eg. 5,275 .) Prepare the journal entries that Sheridan Corporation would make on January 1 and December 31, 2020 and January 1,2021 , related to the bond issue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually, Record journal entries in the order presented in the problem. List all debit entries before credit entries.)
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