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On May 1, 2018, ABC Corporation purchased $1,500,000 of 12% bonds, interest payable on January 1 and July 1, for $1,406,500 plus accrued interest. The
On May 1, 2018, ABC Corporation purchased $1,500,000 of 12% bonds, interest payable on January 1 and July 1, for $1,406,500 plus accrued interest. The bonds mature on January 1, 2024. Amortization is recorded when interest is received by the straight-line method (by months and round to the nearest dollar). (Assume bonds are available for sale.)
Instructions
Complete the Interest Revenue Received and Bond Amortization Schedule.
Date | Cash Received | Interest Revenue | Bod Discount Amortization | Carrying Amount of Bonds |
1/1/18 | $1,406,500 | |||
7/1/18 | ||||
1/1/19 | ||||
7/1/19 | ||||
1/1/20 | ||||
7/1/20 | ||||
1/1/21 | ||||
7/1/21 | ||||
1/1/22 | ||||
7/1/22 | ||||
1/1/23 | ||||
7/1/23 | ||||
1/1/24 |
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