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Crystal Corporation_Bonds Payable

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solution


Question

Question;3. On January 1;2014, Crystal Corporation issued a $100,000 10-year bonds at 11%. Interest is;paid annually on December 31. The bonds were sold for $94,349 and the yield is;12%.;Required;1. Prepare an;amortization schedule that determines interest at the effective interest rate.;2. Prepare an;amortization schedule by the straight-line method.;3. Prepare the;journal entries to record interest expense on December 31, 2016, by each of the;two methods.

 

Paper#37248 | Written in 18-Jul-2015

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