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On January 1, 2023, The Bridgeport Company received a 4-year promissory note that had a face value of $1,205,000, and a stated interest rate of
On January 1, 2023, The Bridgeport Company received a 4-year promissory note that had a face value of $1,205,000, and a stated interest rate of 6%. Interest was receivable on January 1 each year. The note was issued to yield an effective interest rate of 8%. The Bridgeport Company is publicly traded, uses the effective interest method of amortization for discounts or premiums, and has an April 30 year-end. Your answer is partially correct. Prepare a note premium / discount amortization schedule. (Round answers to 0 decimal places, e.g. 58,971
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