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Ridgetop Company Issued the Following Ten-Year Bonds on January 1

Question 10

Essay

Ridgetop Company issued the following ten-year bonds on January 1, 2016: $100,000 maturity value, 5% interest payable annually on each December 31. The bonds were dated January 1, 2016 and the accounting period ends December 31. The bonds were issued for $93,000. Ridgetop uses the effective-interest method for amortization. The amortization for 2016 was $580.
Required:
A. Ridgetop Company issued the following ten-year bonds on January 1, 2016: $100,000 maturity value, 5% interest payable annually on each December 31. The bonds were dated January 1, 2016 and the accounting period ends December 31. The bonds were issued for $93,000. Ridgetop uses the effective-interest method for amortization. The amortization for 2016 was $580. Required: A.

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