Prepare a investment discount amortization schedule

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Question

On January 1, 2010, the Wender Company acquired 12% bonds with a face value of $350,000 and classified as held to maturity. The bonds pay interest on June 30 and December 31, and mature on December 31, 2019.
Required:

a. Assume the bonds were acquired for $312,921 to yield 14%. Prepare a investment discount amortization schedule for the first year of the investment, using the effective interest method. Round all calculations to the nearest dollar.

b. Assume the bonds were acquired for $393,618 to yield 10%. Prepare a investment premium amortization schedule for the first year of the investment using the effective interest method. Round all calculations to the nearest dollar.

Reference no: EM132317496

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