1. Term BondCompany A issued an 8 year, $2,000,000 5% bond on Jan. 1, 2018. Interest...

1. Term BondCompany A issued an 8 year, $2,000,000 5% bond on Jan. 1, 2018. Interest is payable each December 31. The bond sold for $1,958,000. The issue costs were $30,000. The issue costs are merged with any discount or premium to calculate a single effective interest rate. 60% of the bonds are retired on April 1, 2021 at 101 plus accrued interest.Calculate the effective interest rate. Make all needed entries on January 1, 2018, December 31, 2018, April 1, 2021 and December 31, 2021. Include an amortization table for all years.

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ekkarill92 answered 2 years ago

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