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On January 1, Year 1, Parker Company Issued bonds with a face value of $80,000, a stated rate of Interest of 11 percent, and a
On January 1, Year 1, Parker Company Issued bonds with a face value of $80,000, a stated rate of Interest of 11 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of Interest was 13 percent at the time the bonds were issued. The bonds sold for $74,372. Parker used the effectlve Interest rate method to amortize the bond discount. Required a. Prepare an amortization table. b. What item(s) in the table would appear on the Year 4 balance sheet? c. What item(s) in the table would appear on the Year 4 income statement? d. What item(s) in the table would apper on the Year 4 statement of cash flows? Complete this question by entering your answers in the tabs below. Prepare an amortization table. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Complete this question by entering your answers in the tabs below. b. What item(s) in the table would appear on the Year 4 balance sheet? c. What item(s) in the table would appear on the Year 4 income statement? d. What item(s) in the table would appear on the Year 4 statement of cash flows? (Round your intermediate calculations and final answers to the nearest whole dollar amount.)
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