Prepare an amortization schedule for the ?rst ?ve payment

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Problem - On December 31, 2015, when the market rate was 8%, Bones Corp issued $500,000, 10%, 5- year bonds. Interest is payable semiannually on June 30 and December 31. The corporation uses the effective interest method of amortizing bond premiums or discounts.

Present value of an annuity factor for 10 periods at 4% 8.1109

Present value of an annuity factor for 10 periods at 5% 7.7217

Present value factor for 10 periods at 4% 0.6756

Present value factor for 10 periods at 5% 0.6139

Prepare an amortization schedule for the ?rst ?ve payment periods using the format shown below. Round all amounts to the nearest whole dollar.

Reference no: EM132951910

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