On September 1, 2020, Highlight Co. issued $400,000, 8% bonds, due to mature on September...
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Accounting
On September 1, 2020, Highlight Co. issued $400,000, 8% bonds, due to mature on September 1, 2025. Interest is paid semi-annually on March 1 and September 1. Similar bonds at the time of sale were being traded at a market rate of 10%. Required a) Create a bond amortization schedule for Highlight Co. up to September 1, 2025, assuming that the company uses the effective-interest method. b) Assuming that Highlight Co. has a December 31 year-end, provide all required entries from September 1, 2020 through December 31, 2022.
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