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  3. splish brothers inc. sells 7% bonds having a matur

Splish Brothers Inc. sells 7% bonds having a maturity value of $3 million for $2,766,621....

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Accounting

Splish Brothers Inc. sells 7% bonds having a maturity value of $3 million for $2,766,621. The bonds are dated January 1,2023, and
mature on January 1,2028. Interest is payable annually on January 1.
(a)
Set up a schedule of interest expense and discount amortization under the effective interest method. (Hint: The effective
interest rate must be calculated using (1) a financial calculator or (2) Excel function Rate. Refer to Chapter 3 for tips on
calculating.)(Round interest rate and final answers to 0 decimal places, e.g.5,275.)
Jan. 1,2023
Jan. 1,2024
$
$
$
Jan. 1,2025
Jan. 1,2026
Jan. 1,2027
Jan. 1,2028
image

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