Question
Jorge Corp issued $550,000 of 6%, 10year bonds on January 2, 2018 for $540,000. In addition, the company incurred $50,000 in bond issue costs. Interest
Jorge Corp issued $550,000 of 6%, 10year bonds on January 2, 2018 for $540,000. In addition, the company incurred $50,000 in bond issue costs. Interest is paid annually on December 31. What is the correct amount of bond interest expense to be recorded on December 31, 2018 using GAAP?
A. $33,000
B. $42,091
C. $37,240
D. Unable to determine.
Please show work
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Sarbanes Oxley Internal Controls Effective Auditing With AS5 CobiT And ITIL
Authors: Robert R. Moeller
1st Edition
0470170921, 978-0470170922
