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using straighline and them effective-interest. On June 1, 2019, Everly Bottle Company sold $3,000,000 in long-term bonds for $2,631,300. The bonds will mature in 10
using straighline and them effective-interest.
On June 1, 2019, Everly Bottle Company sold $3,000,000 in long-term bonds for $2,631,300. The bonds will mature in 10 years and have a stated interest rate of 8% and a yleld rate of 10%. The bonds pay interest annually on May 31 of each year. Instructions a) Construct a bond amortization table for this problem to indicate the amount of Interest expense and discount amortization at each May 31 using stralght-line amortization. Include only the first four years. Make sure all columns and rows are properly labeled. (Round to the nearest dollar.) b) Construct a bond amortization table for this problem to Indicate the amount of Interest expense and discount amortization at each May 31 using effective-Interest method. Include only the first four years. Make sure all columns and rows are properly labeled. (Round to the nearest dollar.) Step by Step Solution
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