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Company Y issues $20,000.000 of 10-year, 9% bonds on March 1, 2015 at 97 plus accrued interest. The bonds are dated January 1, 2015, and
Company Y issues $20,000.000 of 10-year, 9% bonds on March 1, 2015 at 97 plus accrued interest. The bonds are dated January 1, 2015, and pay interest on June 30 and December 31 Which one of the following is correct: O a. None of the given answers Ob. Cash interest to be paid on June 30, 2015 is equal to $900.000. O e Total cash to be debited on issue date is equal to $19,400.000. O d. The bonds will be issued at a premium Interest expense will be debited by $291,000 on June 30, 2015.
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