Question
On January 1, 2021, Legion Company sold $265,000 of 11% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were
On January 1, 2021, Legion Company sold $265,000 of 11% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were sold for $235,801, priced to yield 13%. Legion records interest at the effective rate. Legion should pay cash interest for the six months ended June 30, 2021, in the amount of:
a. $12,969.
b. $15,327.
c. $14,575.
d. $17,225.
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Principles Of Financial Accounting
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st Edition
0077525264, 978-0077525262
