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On January 1, 2022, Flounder Company issued $1,500,000 face value, 7%, 10-year bonds at $1,610,394. This price resulted in a 6% effective-interest rate on the
On January 1, 2022, Flounder Company issued $1,500,000 face value, 7%, 10-year bonds at $1,610,394. This price resulted in a 6% effective-interest rate on the bonds. Flounder uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1.
(b) Your answer is partially correct. Show the proper long-term liabilities balance sheet presentation for the liability for bonds payable at December 31, 2023. (Round answers to O decimal places, e.g. 125.) FLOUNDER COMPANY Balance Sheet (Partial) December 31, 2023 Long-term Liabilities Bonds Payable $ 1500000 Add Premium on Bonds Payable 8879 $ 1508879 Save for Later Attempts: 1 of 3 used Submit Answer B. Show the proper long-term liabilities balance sheet presentation for the liability for bonds payable at December 31, 2018. (Round answers to 0 decimal places, e.g. 125.) C. Provide the answers to the following questions. 1. What amount of interest expense is reported for 2018? (Round answer to O decimal places, e.g. 125.) Interest expense to be reported $ enter Interest expense in dollars 2. The bond interest expense reported in 2018 would be (select an option: greater than, less than, same as) the amount that would be reported if the straight-line method of amortization were usedStep by Step Solution
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