On January 1, 2020, Ehrlich Corporation issued 8%, 15-year bonds with a face amount of $950,000 at

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Question:

On January 1, 2020, Ehrlich Corporation issued 8%, 15-year bonds with a face amount of $950,000 at 97. Interest is payable annually on January 1.

Instructions

Prepare the following entries:

record the issuance of the bonds on 1/1/20
first annual interest accrual on 12/31/20
amortization, assuming that the company uses straight-line amortization on 12/31/20
payment of interest on 1/1/21
What is the unamortized balance of the discount account at 1/1/21?
What is the carrying value of the bond at 1/1/21?

Posted Date: Jul 03, 2024 11:24 AM

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On January 1, 2020, Ehrlich Corporation issued 8%, 15-year bonds with a face amount of $950,000 at

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