Question
On January 1, 2018, Hart Company issued bonds with a face value of $219,000, a stated rate of interest of 9 percent, and a ten-year
On January 1, 2018, Hart Company issued bonds with a face value of $219,000, a stated rate of interest of 9 percent, and a ten-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 11 percent at the time the bonds were issued. The bonds sold for $193,205. Hart used the effective interest method to amortize the bond.
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Determine the amount of the discount on the day of issue.
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Determine the amount of interest expense recognized on December 31, 2018.
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Determine the carrying value of the bond liability on December 31, 2018.
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Fraud Examination Investigative And Audit Procedures
Authors: Joseph T. Wells
1st Edition
089930639X, 978-0899306391
