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Record the issuance of the bonds on September

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Question - On September 30, 2020,when the market interest rate is 6 percent, Jammer Ltd. issues $8,000,000 of 8 percent, 20-year bonds for $9,849,182. The bonds pay interest on March 31 and September 30. Jammer Ltd. amortizes bond premium by the effective-interest method.

Required -

1. Prepare an amortization table for the first four semi-annual interest periods. Jammer amortizes a bond premium by the effective-interest method.

2. Record the issuance of the bonds on September 30, 2020, the accrual of interest at December 31, 2020, and the semi-annual interest payment on March 31, 2021.

Reference no: EM133128775

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