Question
On January 1, 2020, Orchid Company issued $580,000 of 6% bonds for $518,734, to yield an effective Interest rate of 8%. The bonds pay interest
On January 1, 2020, Orchid Company issued $580,000 of 6% bonds for $518,734, to yield an effective Interest rate of 8%. The bonds pay interest semi-annually on June 30 and December 31 each year and mature in 7 years. Orchid Company uses the effective-interest method of amortization. How will recording the semi-annual interest payment on December 31, 2020 change the financial statement amounts listed below? Enter an Increase as a positive number, and a decrease as negative number. Do not leave any box blank. Do not round your Intermediate calculations, but round your answers to the nearest whole dollar. Financial Statment Amount How much, in Dollars? Net Income Total Liabilities Total Assets
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