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Financial Accounting Final - Part 2 of 4!
SAMPLE
This is a sample practice set. In order to have a more personalized exam prep experience:
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11. Long Term Liabilities / Straight Line Amortization of Bond Premium or Discount / Problem 5
Problem 5

A bond with a face value of \$100,000 is issued at 102% and amortized over 8 periods. Calculate the premium amortization per period and provide the journal entry for the first interest payment if the cash interest paid is \$4,500.