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On June 1, 2019, Tamarisk Company sold $3,240,000 in long-term bonds for $2,841,800. The bonds will mature in 10 years and have a stated interest
On June 1, 2019, Tamarisk Company sold $3,240,000 in long-term bonds for $2,841,800. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective-interest method. Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31.
Date | Credit Cash | Debit Interest Expense | Credit Bond Discount | Carrying Amount of Bonds |
6/1/19 | $ | |||
5/31/20 | $ | $ | $ | |
5/31/21 | ||||
5/31/22 | ||||
5/31/23 |
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