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The Mariner Company, a calendar-year corporation, issued $1,000,000 of 5% bonds at a price generating a 4% yield. The bonds were dated January 1st 2006

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The Mariner Company, a calendar-year corporation, issued $1,000,000 of 5% bonds at a price generating a 4% yield. The bonds were dated January 1st 2006 and were issued that day. The bonds mature January 1st 2016. The bonds pay interest semi-annually on July 1t and January 1st of each year. Using the straight line method of amortization and the effective interest rate method of amortization prepare an amortization schedule for the bonds listing: a. Date -semiannual interest payment date. b. Cash paid for the period. c. Interest Expense for the period. d. Amortization of any premium or discount for the period e. Unamortized premium or discount at the end of the period. f. Ending carrying value 1. 2. Assume the yield is 6 % in the problerm above. Prepare an amortization schedule for the bonds, list the same information in question 1 above under the straight line method of amortization and the effective interest rate method of amortization. What is the journal entry if the bonds are retired on July 1st 2010? Assume any bond interest has already been paid

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