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On January 2, 2020, Progresso Inc. purchased $150,000 of Cambells Corporation bonds at a discount of $10,000. The Cambells bonds pay 5% interest when the
On January 2, 2020, Progresso Inc. purchased $150,000 of Cambells Corporation bonds at a discount of $10,000. The Cambells bonds pay 5% interest when the market rate of interest was 6% for bonds of similiar risk and maturity. The bonds pay interest semiannually on June 30th and December 31st of each year. Progresso accounts for the Cambells bonds as a held-to-maturity investment and uses the effective interest method. Progresso intends to hold these bonds until maturity. Cambell's fiscal year end is December 31st. Required: (1) Prepare an amortization table which includes the first two interest payments. (2) Prepare all the necessary journal entries for 2020. Round all answers to the nearest whole number
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