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On June 1, 2024, Sheridan Bottle Company sold $3,420,000 in long-term bonds for $2,999,701. The bonds will mature in 10 years and have a stated
On June 1, 2024, Sheridan Bottle Company sold $3,420,000 in long-term bonds for $2,999,701. 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. (a) Your answer has been saved: See score details after the due date. Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. Include only the first four years. (Round answers to 0 decimaliplaces, e.g. 25,000.) Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be-made on December 31, 2026. (Credit account titles are automatically indented when the amount is entered. Do-not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. List all debit entries before creditentries. Round answers to 0 decimal places, e.g. 25,000.)
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