Question
1. On January 1, 2020, Breton Company issued its 8% bonds in the face amount of $3,000,000, which mature on January 1, 2030. The bonds
1. On January 1, 2020, Breton Company issued its 8% bonds in the face amount of $3,000,000, which mature on January 1, 2030. The bonds were issued for $3,441,591 to yield 6%. Geller uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. Interest Expense for 2023 is: Answer $_______________ 2. On May 1, 2020, Judice Company issued 400 $1,000 bonds at 104. Each bond was issued with two detachable stock warrants. Shortly after issuance, the bonds were selling at 106, and the fair value of the warrants was $40 each. Prepare the entry to record the issuance of the bonds and warrants.
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