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On January 1 st , 2019, Summertime , Inc. issued $1,000,000 of 8.45%, 6-year bonds at a price of 99.5453 At issuance the market interest
On January 1st, 2019, Summertime, Inc. issued $1,000,000 of 8.45%, 6-year bonds at a price of 99.5453
At issuance the market interest rate was 8.55%.
Summertime expects to pay interest annually (no semi-annual payments), starting with December 31, 2019.
Using the effective-interest method of amortization, insert the amounts required for each of the boxes below. Round amounts to the nearest $. Enter the amounts without $ signs and without commas. For example, $58,500 must be entered as 58500.
(You might have to use the TAB key to move to each box). Date Cash Payment to Bondholders Interest Expense Amortization Balance Bord Carrying Value 1/1/2019 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024Step by Step Solution
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