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Recording Bond Entries and Preparing an Amortization Schedule - Effective Interest Method, Discount Mitchell Inc. issued 4 0 0 of its 6 % , $
Recording Bond Entries and Preparing an Amortization Schedule Effective Interest Method, Discount
Mitchell Inc. issued of its $ bonds on January of Year The bonds pay cash interest semiannually each July and
December and were issued to yield The bonds mature in three years on December and the company uses the effective
interest method to amortize bond discounts or premiums.
Required
a Determine the selling price of the bonds.
b Prepare an amortization schedule for the first year of the bond.
c Prepare journal entries on the following dates.
January of Year bond issuance.
July of Year interest payment.
December of Year interest payment.
Note Round amount to the nearest dollar.
a Selling price of bonds
$
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