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On January 19, 2018, Apple Company sold 12% bonds having a maturity value of 500,000 for 337,908, which provides the bondhold
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Answer #1

(a) Preparation of the Journal entry at the date of the bond issuance -

Date Dr. Cr. Journal 1-Jan-18 Cash A/C Discount on bond payable A/C To Bond payable 337908 162092 500000

(b) Preparation of a schedule of interest expense and bond amortization for 2018 -2023

Under straight Line method -

Apple Company period Ending Cash interest paid Period interest Discount Amortization Unamortized Discount Carrying Value (500

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