Kinston Satellite

Kinston Satellite - amortization of the discount on...

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Problem P11-6A On July 1, 2006 Kinston Satellites issued 3,600,000 face value 9%, 10 years bonds at 3,375,680. The price resulted in an effective-interest rate of 10% on the bonds. Kinston uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest July 1 and January 1. a. Prepare the journal entry to record the issuance of bonds on July 1, 2006. b. Prepare the journal entry to record the accrual of interest and the
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Unformatted text preview: amortization of the discount on December 31, 2006. c. Prepare the journal entry to record the payment of interest and the amortization of the discount on July 1, 2007 assuming that interest was not accrued on June 30 d. Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2007. e. Prepare an amortization table through December 31, 2007 (3 interest periods) for this bond issue....
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This note was uploaded on 04/04/2009 for the course ACC 321 taught by Professor Ahmedmokhtar during the Spring '09 term at Ain Shams University.

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