On January 1, 2020, Timber Corporation issued $800,000, 6%, 5-year bonds for $735,110. The bonds...
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Accounting
On January 1, 2020, Timber Corporation issued $800,000, 6%, 5-year bonds for $735,110. The bonds were sold to yield an effective-interest rate of 8%. Interest is paid annually on January 1. The company uses the effective-interest method of amortization.
(a)
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Prepare a bond discount amortization schedule which shows the amortization of discount for the first two interest payment dates. (Round answers to 0 decimal places, e.g. 5,275.)
