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Presented below is a bond amortization table related to the Brougham Company's $300,000 bond payable and a series of questions. Interest Carrying Year Cash Expense
Presented below is a bond amortization table related to the Brougham Company's $300,000 bond payable and a series of questions. Interest Carrying Year Cash Expense Amortization Value of bds, 344,159 o 1 24,000 20,650 (3,350) 340,809 2 24,000 20.449 (3,551) 337.257 3 24,000 20,235 (3.765) 333,493 4 24,000 20,010 329,502 (3,990) (4.230) 5 24,000 19,770 325,272 6 24,000 19,516 (4.484) 320,789 7 24,000 19,247 (4.753) 316,036 8 24,000 18,962 (5,038) 310,998 9 24,000 18,660 (5.340) 305,658 10 24,000 18,342 (5,658) 300,000 Antwer each question in the space provided. Clearly mark your answers, A. Prepare the journal entry to record the initial sale of the bonds B. What was the effective yield on the bonds at the time of their Issuance? c. If the company used the straight-line method of amortization, what amount would be amortized in year 4? D. If the straight-line method of amortization was used, would interest expense in year 9 be greater than, less than or equal to the amount of Interest expense reported under the effective interest method of amortization
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