Using the data given above, what amount of premium will be amortized by Star Inc. on October

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Using the data given above, what amount of premium will be amortized by Star Inc. on October 1, 2016, using straight-line amortization? Give the general journal entry to record this amortization.
Star Inc. was authorized to issue $1,000,000 of 12 percent bonds. On April 1, 2016, the corporation issued bonds with a face value of $200,000 at a price of 102.0. The bonds mature 10 years from the date of issue. Interest is payable semiannually on October 1 and April 1.
Star Inc. was authorized to issue $1,000,000 of 12 percent bonds. On April 1, 2016, the corporation issued bonds with a face value of $200,000 at a price of 102.0. The bonds mature 10 years from the date of issue. Interest is payable semiannually on October 1 and April 1.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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College Accounting Chapters 1-30

ISBN: 978-0077862398

14th edition

Authors: John Price, M. David Haddock, Michael Farina

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