Reference no: EM131208695
A company issued $15,000,000 of 8% debentures on May 1, 2017 and received cash totaling $13,308,942.
• The bonds pay interest semiannually on May 1 and November 1.
• The maturity date on these bonds is November 1, 2025.
• The firm uses the effective-interest method of amortizing discounts and premiums.
• The bonds were sold to yield an effective-interest rate of 10%. Using the attached T-account template, prepare the following transactions:
5/1/17 Bond issuance
10/31/17 Accrual of interest and amortization of bond discount/premium
11/1/17 Interest payment
4/30/18 Accrual of interest and amortization of bond discount/premium
5/1/18 Interest payment
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: A company issued $15,000,000 of 8% debentures on May 1, 2017 and received cash totaling $13,308,942. The firm uses the effective-interest method of amortizing discounts and premiums. The bonds were sold to yield an effective-interest rate of 10%. Usi..
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