Using the effective-interest amortization methodOn December 31, 2018, when the market interest rate is...

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Accounting

Using the effective-interest amortization method
On December 31, 2018, when the market interest rate is 6%,Benson Realty issues $700,000 of 6.25%, 10-year bonds payable. Thebonds pay interest semiannually. Ben- son Realty received $713,234in cash at issuance.
Requirements
1. Prepare an amortization table using the effective interestamortization method for the first two semiannual interest periods.(Round to the nearest dollar.)
2. Using the amortization table prepared in Requirement 1,journalize issuance of the bonds and the first two interestpayments.

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1 A B C D B C E F G E F Date Interest Payment Stated Rate 3125 Interest Expense Effective Rate 3 Amortization Credit Balance in Bond Premium Credit Balance in Bonds See Answer

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In: AccountingUsing the effective-interest amortization methodOn December 31, 2018, when the market interest rate is 6%,...Using the effective-interest amortization methodOn December 31, 2018, when the market interest rate is 6%,Benson Realty issues $700,000 of 6.25%, 10-year bonds payable. Thebonds pay interest semiannually. Ben- son Realty received $713,234in cash at issuance.Requirements1. Prepare an amortization table using the effective interestamortization method for the first two semiannual interest periods.(Round to the nearest dollar.)2. Using the amortization table prepared in Requirement 1,journalize issuance of the bonds and the first two interestpayments.