Flounder Company issued $5,200,000 of 6%, 10-year bonds on January 1, 2020, for $4,420,000 to yield an effective annual rate of 9%. The effective-interest method of amortization is to be used. Complete the bond amortization schedule for 2020 and 2021.

Flounder Company issued $5,200,000 of 6%, 10-year bonds on January 1, 2020, for $4,420,000 to yield an effective annual rate of 9%. The effective-interest method of amortization is to be used. Complete the bond amortization schedule for 2020 and 2021.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 1MC

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Flounder Company issued $5,200,000 of 6%, 10-year bonds on January 1, 2020, for $4,420,000 to yield an effective annual rate of 9%.
The effective-interest method of amortization is to be used. Complete the bond amortization schedule for 2020 and 2021.
Interest
Interest to
Interest Expense
Discount
Unamortized
Periods
Be Paid
to Be Recorded
Amortization
Discount
January
1, 2020
January
1, 2021

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