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Specialty Autoparts Inc. issued $170,000 of 5%,10-year bonds at a price of 82 on January 31,2020 . The market interest rate at the date of
Specialty Autoparts Inc. issued $170,000 of 5%,10-year bonds at a price of 82 on January 31,2020 . The market interest rate at the date of issuance was 7%, and the standard bonds pay interest semi-annually. 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. 2. Record Specialty's issuance of the bonds on January 31,2020 , and payment of the first semi-annual interest amount and amortization of the bonds on July 31 , 2020. Explanations are not required. Specialty Autoparts Inc. issued $170,000 of 5%,10-year bonds at a price of 82 on January 31,2020 . The market interest rate at the date of issuance was 7% and the standard bonds pay interest semi-annually. 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. 2. Record Specialty's issuance of the bonds on January 31, 2020, and payment of the first semi-annual interest amount and amortization of the bonds on July 31,2020 . Explanations are not required. 2. Record Specialty's issuance of the bonds on January 31, 2020, and payment of the first semi-annual interest amount and amortization of the bonds on July 31 , 2020. (Record debits first, then credits. Explanations are not required.) Start by recording the issuance of bonds on January 31, 2020
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