Construct an amortization schedule for this bond issue

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Question - Amortization schedule for bonds. On January 1, 2012, Seward Corporation issues $100,000 face value, 8% semiannual coupon bonds maturing three years from the date of issue. The coupons, dated for June 30 and December 31 of each year, each promise 4% of the face value, 8% total for a year. The firm issues the bonds to yield 10%, compounded semiannually.

Required -

A. Construct an amortization schedule, for this bond issue, assuming that Seward Company uses amortized cost measurement based on the historical market interest rate to account for the bonds.

B. Give the journal entries related to these bonds for 2012. Seward uses the calendar year as its reporting period.

Reference no: EM132696554

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