Question
On January 1, a company issued and sold a $450,000, 3%, 10-year bond payable, and received proceeds of $444,000. Interest is payable each June 30
On January 1, a company issued and sold a $450,000, 3%, 10-year bond payable, and received proceeds of $444,000. 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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$450,000.
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$449,700.
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$450,300.
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$443,700.
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$444,300.
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Principles Of Auditing
Authors: O. Ray Whittington, Kurt Pany, Walter B. Meigs
12th Edition
0256167796, 978-0256167795
