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Please help me correct the following bond amortization schedule. thanks Sheridan Inc. is building a new hockey arena at a cost of $2,150,000. It received
Please help me correct the following bond amortization schedule. thanks
Sheridan Inc. is building a new hockey arena at a cost of $2,150,000. It received a down payment of $430,000 from local businesses to support the project, and now needs to borrow $1,720,000 to complete the project. It therefore decides to issue $1,720,000 of 10 year, 10.5% bonds. These bonds were issued on January 1, 2023, and pay interest annually on each January 1. The bonds yield 10.5% to the investor and have an effective interest rate to the issuer of 10.40530%. (There is an increased effective interest rate due to the capitalization of the bond issue costs.) Any additional funds that are needed to complete the project will be obtained from local businesses. Sheridan paid and capitalized $43,000 in bond issuance costs related to the bond issue. Sheridan prepares financial statements in accordance with IFRS. Prepare a bond amortization schedule up to and including January 1,2028, using the effective interest method. (Round answers to 0 decimal places, e.g. 5.275.) Step by Step Solution
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