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On January 1, 2022, Shamrock Company acquires $270,000 of Nicklaus, Inc., 9% bonds at a...

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Accounting

On January 1, 2022, Shamrock Company acquires $270,000 of Nicklaus, Inc., 9% bonds at a price of $244,500. The interest is payable each December 31, and the bonds mature December 31, 2024. The investment will provide Shamrock Company a 13% yield. The bonds are classified as held-for-collection.

(a)

Prepare a 3-year schedule of interest revenue and bond discount amortization. (Round answers to 2 decimal places, e.g. 2,512.37.)

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Current Attempt in Progress On January 1, 2022, Shamrock Company acquires $270,000 of Nicklaus, Inc., 9% bonds at a price of $244,500. The interest is payable each December 31, and the bonds mature December 31, 2024. The investment will provide Shamrock Company a 13% yield. The bonds are classified as held-for-collection. (a) Prepare a 3-year schedule of interest revenue and bond discount amortization. (Round answers to 2 decimal places, e.g. 2,512.37.) Schedule of Interest Revenue and Bond Discount Amortization Effective-Interest Method Bond Purchased to Yield Cash Received Interest Revenue Bond Discount Amortization Carrying Am of Bond: Date 1/1/22 $ $ $ $ 12/31/22 12/31/23 12/31/24

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