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Question 20 On June 1, 2019, Swifty Company sold $2,460,000 in long-term bonds for $2.157,700, The bonds will mature in 10 years and have
Question 20 On June 1, 2019, Swifty Company sold $2,460,000 in long-term bonds for $2.157,700, The bonds will mature in 10 years and have a stated interest rate of 0% and a yield rate of 10%. The bondsey interest annually on May 31 of each year The bonds are to be accounted for under the effective-interest method. (a) Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. (Please round interest expense and bund discount columns to zero decimal places.) Date 6/1/19 Credit Cash 5/31/20 T 5/31/21 5/31/22 5/31/23 SHOW LIST OF ACCOUNTS Debit Interest Expense Credit Bond Discount Carrying Amount of Bands
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