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On July 1, 2005, J & J, Inc. issued 9% bonds in the face amount of $5,000,000, which mature on July 1, 2015. The bonds were issued for $4,695,000 to yield 10%, resulting in a bond discount of $305,000. J & J uses the effective-interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2007, J & J’s unamortized bond discount should be how much?

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Jean Keeling
Jean KeelingLv2
26 Jul 2022
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Related questions

On July 1, 2017, Sugarland Company issued $2,000,000 face value of 10%, 10-year bonds at $1,770,602, a yield of 12%. Sugarland uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2018, balance sheet.

On January 1, 2001, Robben Corporation issued $500,000 of 12% 15-year bonds (interest is paid semi-annually on June 30 and December 31). The effective yield is 8%. Robben uses the effective interest method to amortize bond premium/discount. On June 30, 2002, the adjusted bond premium balance should be:

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Please show all the formulas.

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