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QUESTION 2 (35 marks) Denver Corp. issued $50,000, 9%, 6-year bonds on December 31, 2019 for $47,822 cash when the market rate was 10%. Interest
QUESTION 2 (35 marks) Denver Corp. issued $50,000, 9%, 6-year bonds on December 31, 2019 for $47,822 cash when the market rate was 10%. Interest is to be paid annually on Dec 31. The company uses the effective interest method for amortization. Required: (A) Using the effective interest method, complete the following table. Unamortized Period Ending Cash Interest Paid Period Interest Expense Carrying Value Amortization (B) prepare the journal entry to record i. on bond issue date. Account Date DR ($) CR ($) ii. the fifth interest payment. Account Date DR ($) CR ($) iii. repayment of principal on the date of maturity. Account Date DR ($) CR ($)
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