January 1, 2020, Altaj Company acquires $400,000 of toothpaste Products, Inc., 9% bonds at a price of $350,450. Interest is received on January 1 of each year, and the bonds mature on January 1, 2022. The investment will provide Altaj Company a 12% yield. The bonds are classified as held-to-maturity.Required a. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight line method.b. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the effective interest method.c. Prepare the journal entry for the interest revenue and discount amortization under the straight-line method at December 31, 2021.d. Prepare the journal entry for the interest revenue and discount amortization under the effective interest method at December 31, 2021
January 1, 2020, Altaj Company acquires $400,000 of toothpaste Products, Inc., 9% bonds at a price of $350,450. Interest is received on January 1 of each year, and the bonds mature on January 1, 2022. The investment will provide Altaj Company a 12% yield. The bonds are classified as held-to-maturity.Required a. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the
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