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I need help computing the interest expense for this problem please Exercise 14-8 Presented below are three independent situations. (a) Sarasota Co. sold $2,060,000 of
I need help computing the interest expense for this problem please
Exercise 14-8 Presented below are three independent situations. (a) Sarasota Co. sold $2,060,000 of 12%, 10-year bonds at 104 on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on July 1 and January 1. If Sarasota uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2017, and December 31, 2017. (Round answer to o decimal places, e.g. 38,548.) Interest expense to be recorded (b) Ivanhoe Inc. issued $600,000 of 8%, 10-year bonds on June 30, 2017, for $462,358. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Ivanhoe uses the effective- interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2017. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to O decimal places, e.g. 38,548.) Interest expense to be recordedStep by Step Solution
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