DUE WEDNESDAY NOVEMBER 17 1. On December 31, 2020, when the market rate was 6%,...
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DUE WEDNESDAY NOVEMBER 17 1. On December 31, 2020, when the market rate was 6%, Dawson Corp issued $700,000,8%, 5-year bonds. Interest is payable semi-annually on June 30 and December 31. The corporation uses the effective interest method of amortizing bond premiums or discounts. REQUIRED: 1. Calculate the issue price note: show calculations (calculator keystrokes, formulas or tables) 2. Were the Bonds issued at Par? Premium? Or Discount? 3. Prepare the journal entries for the bond issuance and first two interest payments 4. Prepare an amortization schedule for the first four payment periods using the format shown below. NOTE: Round all amounts to the nearest whole dollar Period Ending Cash Period Interest Premium Discount Unamortized Carrying Interest Expense Amortized Discount/Premium Value paid 12/31/2020 6/30/2021 12/31/2021 6/30/2022 12/31/2022
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