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How do you find the net bonds payable? ABC Corporation issued $100,000 of 10%, 5-year bonds on January 1, 2015, for $92,280. The market interest
How do you find the net bonds payable?
ABC Corporation issued $100,000 of 10%, 5-year bonds on January 1, 2015, for $92,280. The market interest rate when the bonds were issued was 12%. Interest is paid semi-annually on January 1 and July 1. Using the effective-interest amortization method and assuming ABC records its bonds payable net of premiums and discounts, the entry to record the interest payment on July 1, 2015 will include a (Check all that apply.) Check all that apply. $5,536.80 credit to Cash $5,536.80 debit to Interest expense $5,000.00 debit to Interest expense $536.80 credit to Bonds payable $536.80 debit to Bonds payable $5,000.00 credit to Cash Read about this Do you know the answer? I know it Think so Unsure No idea
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