Question
Anthropology Corp. issued 6-year, 8% bonds with a face value of $850,000 on October 1, 2021. The bonds are dated October 1, 2021. Interest is
Anthropology Corp. issued 6-year, 8% bonds with a face value of $850,000 on October 1, 2021. The bonds are dated October 1, 2021. Interest is paid semi-annually on Aptil 1 and October 1. The market rate of interest at issuance is 6%. This fiscal year-end is November 30th. The company uses the straight-line amortization method.
What amount of interest expense is reported in the fiscal year ending in November 2021?
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Financial Accounting
Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin
5th Canadian edition
133472264, 978-0133446265, 133446263, 978-0133472264
