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On September 30, 2020, when the market interest rate is 9 percent, Team Ltd. issues $8,500,000 of 11 percent, 20-year bonds for $10,064,134. The bonds
On September 30, 2020, when the market interest rate is 9 percent, Team Ltd. issues $8,500,000 of 11 percent, 20-year bonds for $10,064,134. The bonds pay interest on March 31 and September 30. Team Ltd. amortizes bond premium by the effective-interest method. Required 1. Prepare an amortization table for the first four semi-annual interest periods. Team amortizes a bond premium by the effective-interest method. 2. Record the issuance of the bonds on September 30, 2020, the accrual of interest at December 31, 2020, and the semi-annual interest payment on March 31, 2021.
On September 30, 2020, when the market interest rate is 9 percent, Team Ltd. issues $8,500,000 of 11 percent, 20-year bonds for $10,064,134. The bonds pay interest on March 31 and September 30. Team Ltd. amortizes bond premium by the effective-interest method.
Required
1. Prepare an amortization table for the first four semi-annual interest periods. Team amortizes a bond premium by the effective-interest method.
2. Record the issuance of the bonds on September 30, 2020, the accrual of interest at December 31, 2020, and the semi-annual interest payment on March 31, 2021.
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Introduction To Health Care Management
Authors: Sharon B. Buchbinder, Nancy H. Shanks
3rd Edition
128408101X, 9781284081015
