Question
On January 1, a company issued and sold a $390,000, 4%, 10-year bond payable, and received proceeds of $381,000. Interest is payable each June 30
On January 1, a company issued and sold a $390,000, 4%, 10-year bond payable, and received proceeds of $381,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the first interest payment is:
Multiple Choice
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$381,450.
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$380,550.
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$389,550.
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$390,450.
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$390,000.
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College Accounting A Practical Approach
Authors: Jeffrey Slater, Debra Good
14th Canadian Edition
0135222419, 978-0135222416
