Extra-Credit-amortization of bond premium

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Reference no: EM13823312

EXTRA – CREDIT

GRIZZY, INC. issued $100,000 worth of 10%, five-year bonds at a price of $108,111 when the market rate of interest was 8% (interest is payable semi annually). Calculate the amortization of the bond premium assuming the effective interest amortization method and prepare the entries to record the first two interest payments and amortization.

Reference no: EM13823312

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