Hamilton issues bonds dated January 1, 2019, with a par value of $250,000. The bonds’ annual contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $231,570.
Required: (You are better to prepare an amortization table to support your answer)
Please calculate, cash interest paid, bond interest expense, discount amortization, and carrying value of bond on December 31, 2019, for the bonds using the effective interest method to amortize the discount.
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