2. On June 30, 2018 the market rate of interest Is 9%. Ramsey Cor issues$550,000 of 12%, 20 year bonds payable at $701,813. The bonds pay interest on June 30 and December 31. The company amortizes bond premium using the effective interest method. a. Prepare a bond amortization table for the first 6 years of the bond term b. Record the issuance of the bond payable on June 30, 2018, the payment of interest on Dec. 31, 2018 and June 30, 2019

2. On June 30, 2018 the market rate of interest Is 9%. Ramsey Cor issues$550,000 of 12%, 20 year bonds payable at $701,813. The bonds pay interest on June 30 and December 31. The company amortizes bond premium using the effective interest method. a. Prepare a bond amortization table for the first 6 years of the bond term b. Record the issuance of the bond payable on June 30, 2018, the payment of interest on Dec. 31, 2018 and June 30, 2019

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 15MCQ

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Similar questions

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