Question
InterTech Corporation needed financing to build a new manufacturing plant. On June 30, 2017, InterTech issued $4,350,000 of 8-year bonds with a 6% coupon rate
InterTech Corporation needed financing to build a new manufacturing plant. On June 30, 2017, InterTech issued $4,350,000 of 8-year bonds with a 6% coupon rate (payments due on December 31st and June 30th). The effective interest rate was 8%.
What amount in interest expense did InterTech record for the June 30, 2018 payment?
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Financial Accounting Impact On Decision Makers
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
1111464936, 978-1111464936
