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    Amortization Schedule: Straight-Line

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    Spencer company sells 10% bonds having a maturity value of 3,000,000 for 2,783,724. The bonds are dated Jan 1, 2012 and mature Jan 1, 2017. Interest is payable annually on Jan 1.

    INSTRUCTION
    Set up a schedule of interest expense and discount amortization under the straight line method.

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    https://brainmass.com/business/finance/amortization-schedule-straight-line-504911

    Solution Preview

    ** Please see the full solution provided in the attached excel spreadsheet **

    Journal entries are recorded as follows.

    Date Details ...

    Solution Summary

    In this solution, we make a schedule of interest expense and discount amortization under the strait line method for a given case example.

    $2.19

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