Solution-Show an amortization schedule by the straight-line

Show an amortization schedule by the straight-line method

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Reference no: EM131807876

Question - On January 1, 2013, Company XYZ issued:

$100,000, 9%, four-year bonds.

Interest is paid semiannually on June 30 and December 31.

The bonds were issued at $96,768 to yield an annual return of 10%.

1) Show an amortization schedule that determines interest at the effective interest rate

2) Show an amortization schedule by the straight-line method

3) Show the journal entries to record interest expense on June 30, 2014, by each of the two approaches

4) Assuming the market rate is still 10%, what price would a second investor pay the first investor on June 30, 2014, for $10,000 of the bonds?

Reference no: EM131807876

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Show an amortization schedule by the straight-line method

Reference no: EM131807876

Reference no: EM131807876

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