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Business, 24.04.2020 01:38 amiechap12

Before maturity, Foster Incorporated sold $500,000 of 12% bonds on January 1, 2019, for $470,143.47, a price that yields a 14% interest rate. The bonds pay interest semiannually on June 30 and December 31 and are due December 31, 2022. Foster uses the effective interest method.

A) Prepare an interest expense and discount ammortization schedule.
B) Assume the company reacquired the bonds on July 1, 2021 at 104. prepare journal entries to record the bond retirement.

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Before maturity, Foster Incorporated sold $500,000 of 12% bonds on January 1, 2019, for $470,143.47,...
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