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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Exercise 14-6
Skysong Company sells 9% bonds having a maturity value of $2,200,000 for $1,962,092. The bonds are dated January 1, 2017, and mature January 1, 2022. Interest is payable annually on January 1.
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Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to 0 decimal places, e.g. 38,548.)
Schedule of Discount Amortization
Straight-Line Method
Year Cash Paid Interest Expense Discount Amortized Carrying Amount of Bonds
Jan. 1, 2017
Jan. 1, 2018
Jan. 1, 2019
Jan. 1, 2020
Jan. 1, 2021
Jan. 1, 2022
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