Question
On January 1, 2019, Tonika Company issued a five-year, $10,000, 7% bond. The interest is payable annually each December 31. The issue price was $9,601
On January 1, 2019, Tonika Company issued a five-year, $10,000, 7% bond. The interest is payable annually each December 31. The issue price was $9,601 based on an 8% effective interest rate. Tonika uses the effective-interest amortization method. The interest expense on the income statement for the year ended December 31, 2019 is closest to:
Multiple Choice $768. $880. $700. $672.
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Financial Accounting An Introduction To Concepts Methods And Uses
Authors: Clyde P. Stickney, Roman L. Weil
12th Edition
0324381980, 978-0324381986
