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Unger Autoparts Inc. issued $120,000 of 8%, 10-year bonds at a price of 90 on January 31, 2020. The market interest rate at the date
Unger Autoparts Inc. issued $120,000 of 8%, 10-year bonds at a price of 90 on January 31, 2020. The market interest rate at the date of issuance was 11%, 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 Unger'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. 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. (Round your answers to the nearest whole dollar.) Semi-annual Interest Date Unger Autoparts Amortization Table B D Interest Payment Interest Expense (5.5% of Bond Discount Bond Discount Bond Carrying (4% of Maturity Preceding Bond Carrying Amortization (B Account Balance Amount ($120,000 Value) Amount) - A) (Preceding D-C) D) 12,000 108,000 4,800 5,940 4,800 Jan. 31, 2020 July 31, 2020 Jan. 31, 2021 July 31, 2021 4,8001
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