Barnett Industries, Inc., issued $600,000 of 8% bonds on January 1, 2016. The bonds pay interest semiannually
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Barnett Industries, Inc., issued $600,000 of 8% bonds on January 1, 2016. The bonds pay interest semiannually on July 1 and January 1. The maturity date on these bonds is December 31, 2025. The firm uses the effective interest method of amortizing discounts and premiums. The bonds were sold to yield an effective interest rate of 9%. Barnett incurred legal and investment banking fees of $22,000 in issuing the bonds and amortizes these costs annually on a straight-line basis.
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1111822361
1st edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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