On June 1, 2018, Ken Company sold $200,000 in long-term bonds for $175,520. The bonds have a stated interest rate of 8% and a yield of 10%. Maturity of the bonds is 10 years and payment of interest is annually, on May 31 of each year. Required: Construct a bond amortization table for the first four years. Prepare the adjusting entry to be recorded on December 31, 2020.

On June 1, 2018, Ken Company sold $200,000 in long-term bonds for $175,520. The bonds have a stated interest rate of 8% and a yield of 10%. Maturity of the bonds is 10 years and payment of interest is annually, on May 31 of each year. Required: Construct a bond amortization table for the first four years. Prepare the adjusting entry to be recorded on December 31, 2020.

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 1RE

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