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Premium Amortization on the first day of the fiscal year, a company issues a $6,000,000, 796, 6-year bond that pays semiannua

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Answer #1
Account title Debit credit
Interest expense 130685
Premium on bond payable 79315
cash 210000

**Premium on bond payable : 6951781-6000000= 951781

semiannual months = 6*2 = 12

Premium amortization per semiannual months = 951781/12

                         = $ 79315

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Premium Amortization on the first day of the fiscal year, a company issues a $6,000,000, 796, 6-year bond that pays semiannual interest of $210,000 ($6,000,000 x 796 × Y), receiving cash of $6,951,78...
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