Question
On January 1, 2019, Tonika Company issued a four-year, $10,600, 7% bond. The interest is payable annually each December 31. The issue price was $9,968
On January 1, 2019, Tonika Company issued a four-year, $10,600, 7% bond. The interest is payable annually each December 31. The issue price was $9,968 based on an 8% effective interest rate. Tonika uses the effective-interest amortization method. Rounding calculations to the nearest whole dollar, which of the following journal entries correctly records the 2019 interest expense?
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Advanced Financial Accounting
Authors: Richard E. Baker, Valdean C. Lembke, Thomas E. King
5th Edition
0072444126, 978-0072444124
