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On January 1, 2025, Novak Company purchased 9% bonds having a maturity value of $210,000 for $227,221.68. The bonds provide the bondholders with a
On January 1, 2025, Novak Company purchased 9% bonds having a maturity value of $210,000 for $227,221.68. The bonds provide the bondholders with a 7% yield. They are dated January 1, 2025, and mature January 1, 2030, with interest received on January 1 of each year. Novak Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 1,225.25.) Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method 9% Bonds Sold to Yield 7% Date 1/1/25 $ 1/1/26 1/1/27 1/1/28 1/1/29 1/1/30 Cash Received Interest Premium Revenue Amortized Carrying Amo of Bonds $ $ $ $227,
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