Straight-line method of amortizing bond discount

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Madison Company issues $5,000,000 face value, 12%, 5-year bonds payable on December 31, 2005. Interest is paid semiannually each June 30 and December 31. The bonds sell at a price of 97; Madison uses the straight-linemethod of amortizing bond discount or premium.

Reference no: EM13143734

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Straight-line method of amortizing bond discount : Madison Company issues $5,000,000 face value, 12%, 5-year bonds payable on December 31, 2005. Interest is paid semiannually each June 30 and December 31. The bonds sell at a price of 97; Madison uses the straight-linemethod of amortizing bond disc..

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