Question
On January 1, Dias Corporation issued $1,000,000, 10%, 5-year bonds with interest payable on January 1. The bonds sold for $1,081,105. The market rate of
On January 1, Dias Corporation issued $1,000,000, 10%, 5-year bonds with interest payable on January 1. The bonds sold for $1,081,105. The market rate of interest for these bonds was 8%. On the first interest date, using the effective-interest method, the debit entry to Interest Expense is for
a. $80,000.
b. $86,488.
c. $100,811.
d. $100,000.
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Financial Accounting The Basics
Authors: Ilias Basioudis
1st Edition
1138605514, 9781138605510
