Question
On January 1, 2021, Legion Company sold $230,000 of 4% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were
On January 1, 2021, Legion Company sold $230,000 of 4% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were sold for $124,477, priced to yield 12%. Legion records interest at the effective rate. Legion should report bond interest expense for the six months ended June 30, 2021, in the amount of:
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Cornerstones of Financial and Managerial Accounting
Authors: Rich Jones, Mowen, Hansen, Heitger
1st Edition
9780538751292, 324787359, 538751290, 978-0324787351
