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Record the bond issue on january

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Reference no: EM131613815

Question - On January 1, 2018, White Water issues $400,000 of 5% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.

Assuming the market interest rate on the issue date is 4%, the bonds will issue at $444,793.

Required -

1. Compete the first three rows of an amortization table.

Date

Cash Paid

Interest Expense

Decrease in Carrying Value

Carrying Value

1/1/18

 

 

 

 

6/30/18

 

 

 

 

12/31/18

 

 

 

 

2. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018.

Reference no: EM131613815

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