Practice Problem 2

To record accrued interest and premium amortization for 6 months for the remaining bonds. 12–29. (1) Straight-Line Method: The amount of discount amortized under the straight-line method is the same for all years: $6,500 discount ( 12/120 = $650. (2) Effective-Interest Method: 2007 July 1 Interest amount based on effective rate ................
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