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Prepare amortization table using effective interest method

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Reference no: EM133111873

Question - Interest Expense-Effective-Interest - Cumming Corp. issues a $6,100,000, 5% bond on 1 April 20X3. At this time, market interest rates are in the range of 6%. The bond had a 10-year life from 1 April 20X3, and paid interest semi-annually on 31 March and 30 September.

Required -

1. Calculate the proceeds that would be raised on bond issuance.

2. Prepare an amortization table using the effective interest method of amortization. Complete the first four payments only.

Reference no: EM133111873

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