Question
19.20.The below information will be used for the next three questions. A Company issued the following bond payable on March 31, 20X1, the interest payment
19.20.The below information will be used for the next three questions.
A Company issued the following bond payable on March 31, 20X1, the interest payment date.
| Bond payable | 800,000 |
| Coupon rate | 5.200% |
| Market rate | 8.428% |
| Bond yield rate | 9.400% |
| Bond issue price | 630,000 |
| Term | 10 |
| Bond issue costs | 42,000 |
| Bond issue date | March 31, 20X1 |
1.The Company prepares financial statements on December 31, 20X1. What is interest expense in 20X1?
2. The Company prepares financial statements on December 31, 20X1. What is the carrying value of the bond at December 31, 20X1?
3. What is interest expense in 20X2?
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Managerial Accounting Method And Meaning Teachers Guide
Authors: R.M.S. Wilson
2nd Edition
0412436205, 978-0412436208
