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On January 1, 2021, B Corp. issued $600,000, 10% bonds at par. The bonds are dated November 1, 2020, and mature on November 1, 2025.
On January 1, 2021, B Corp. issued $600,000, 10% bonds at par. The bonds are dated November 1, 2020, and mature on November 1, 2025. Interest will be paid semiannually on April 30 and October 30. The company has September 30 fiscal year end.
a) What is the total amount of cash received from the bond issuance?
b) What amount of accrued interest payable should B report in its September 30, 2021 balance sheet?
c) How many month of interest expense will the company included the income statement for the year ended September 30, 2021?
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