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. QUESTION 1 9 points Save Answer Athlead Company issued $750,000 of 12%, 20-year bonds on January 1, 2020. Interest is payable semiannually on
. QUESTION 1 9 points Save Answer Athlead Company issued $750,000 of 12%, 20-year bonds on January 1, 2020. Interest is payable semiannually on July 1 and January 1. Athlead Company uses the effective- interest method of amortization for bond premium or discount. Assume an effective yield of 14%. Instructions Prepare the journal entries to record the following. (Round to the nearest dollar.) a. The issuance of the bonds. b. The payment of interest and related amortization on July 1, 2020. c. The accrual of interest and the related amortization on December 31, 2020. Use the following PV tables for computations: PV of an ordinary annuity of $1 1-5% N-20 12.46221 1-6% 11.46992 1-7% 10.59401 N-40 17.15909 15.04630 13.33171 PV of $1: 1-5% 1-6% 1-7% N-20 0.37689 0.31180 0.25842 N=401 0.14205 0.09722 0.06678
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