Question
The Master Corp issued $300,000 at 7.5% 10 yr bonds. The bonds are dated and sold on Jan 1, 2013. The interest payment dates are
The Master Corp issued $300,000 at 7.5% 10 yr bonds. The bonds are dated and sold on Jan 1, 2013. The interest payment dates are Jan 1, Jul 1. The bonds are issued for $289,688. The amount of interest rate is 8%. In the 1st semiannual interest payment date July 1, 2013 the company recorded $11,588 in interest expense and $338 in discount amortization. Using the effective interest method what is the carrying amount of the bond on Jan 1, 2014 balance sheet?
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Solution Computation of the following Fave Value 300000 Rate Coupon Rate 750 Semi annually 375 Inter...
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Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
2nd edition
9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828
