Question
On 1 January 2010, Elegant Fragrances Company issues 1,000,000 face value, five-year bonds with annual interest payments of 65,000 to be paid each 31 December.
On 1 January 2010, Elegant Fragrances Company issues 1,000,000 face value, five-year bonds with annual interest payments of 65,000 to be paid each 31 December. The market interest rate is 5.0 percent. Using the effective interest rate method of amortisation, how much is Elegant Fragrances is most likely to record?
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Survey Of Accounting
Authors: Carl S. Warren, Amanda Farmer, Jefferson P. Jones
10th Edition
0357900294, 9780357900291
