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On January 1, 2024, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on...

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Accounting

On January 1, 2024, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below:

Payment Cash Payment Effective Interest Increase in Balance Outstanding Balance
6,256,164
1 234,000 250,247 16,247 6,272,411
2 234,000 250,896 16,896 6,289,307
3 234,000 251,572 17,572 6,306,879
4 234,000 252,275 18,275 6,325,154
5 234,000 253,006 19,006 6,344,160
6 234,000 253,766 19,766 6,363,926
~ ~ ~ ~ ~
~ ~ ~ ~ ~
~ ~ ~ ~ ~
38 234,000 303,342 69,342 7,652,885
39 234,000 306,115 72,115 7,725,000
40 234,000 309,000 75,000 7,800,000

Required:

What is the face amount of the bonds?

What is the initial selling price of the bonds?

What is the term to maturity in years?

Interest is determined by what approach?

What is the stated annual interest rate?

What is the effective annual interest rate?

What is the total cash interest paid over the term to maturity?

What is the total effective interest expense recorded over the term to maturity?

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