Question
On January 1, 2019, XYZ Co. issued a $500,000, 8%, 5-year bond for $461,384. The bonds pay interest semiannually on June 30 and December 31.
On January 1, 2019, XYZ Co. issued a $500,000, 8%, 5-year bond for $461,384. The bonds pay interest semiannually on June 30 and December 31. The effective rate on the date of issue was 10% APR. What was the carrying value of the bond at December 31, 2019 after the interest payment had been recorded?
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
