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On January 1, 2020, Skysong Inc. sold 14% bonds having a maturity value of $700,000 for $750,469, which provides the bondholders with a 12% yield.

On January 1, 2020, Skysong Inc. sold 14% bonds having a maturity value of $700,000 for $750,469, which provides the bondholders with a 12% yield. The bonds are dated January 1, 2020, and mature on January 1, 2025, with interest payable on January 1 of each year. The company follows IFRS and uses the effective interest method.

Prepare a schedule of interest expense and bond amortization for 2020 through 2023.

Schedule of Interest Expense and Bond Premium Amortization Effective Interest Method

Date Credit Cash Debit Interest Expense Debit Bonds Payable Carrying Amount of Bonds
1/1/20
1/1/21
1/1/22
1/1/23

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