Marigold Corporation issued $370,000, 7%, 20-year bonds on January 1, 2022, for $333,674. This price resulted in an effective-interest rate of 8% on the bonds. Interest is payable annually on January 1. Marigold uses the effective-interest method to amortize bond premium o

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Marigold Corporation issued $370,000, 7%, 20-year bonds on January 1, 2022, for $333,674. This price resulted in an effective-interest rate of 8% on the bonds. Interest is payable annually on January 1. Marigold uses the effective-interest method to amortize bond premium or discount.

 

Interest Expense
Discount
Unamortized
Bond
to Be Recorded
Amortization
Discount
Carrying Value
$
26693.92
793.92
333674
26693.92
793.92
333674
%24
%24
%24
Transcribed Image Text:Interest Expense Discount Unamortized Bond to Be Recorded Amortization Discount Carrying Value $ 26693.92 793.92 333674 26693.92 793.92 333674 %24 %24 %24
Prepare the schedule using effective-interest method to amortize bond premium or discount of Marigold. (Round answers to 0
decimal places, e.g. 5,275.)
Interest
Interest to
Interest Expense
Discount
Unamor
Periods
Be Paid
to Be Recorded
Amortization
Discou
Issue
date
1
25900
26693.92
793.92
2
25900
26693.92
793.92
%24
Transcribed Image Text:Prepare the schedule using effective-interest method to amortize bond premium or discount of Marigold. (Round answers to 0 decimal places, e.g. 5,275.) Interest Interest to Interest Expense Discount Unamor Periods Be Paid to Be Recorded Amortization Discou Issue date 1 25900 26693.92 793.92 2 25900 26693.92 793.92 %24
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