Question
On January 1, Evangel Company issued 9% bonds in the face amount of $100,000, which mature in 5 years. The bonds were issued for $96,207
On January 1, Evangel Company issued 9% bonds in the face amount of $100,000, which mature in 5 years. The bonds were issued for $96,207 to yield 10%, resulting in a bond discount of $3,793. Evangel uses the effective interest method of amortizing bond discount. Interest is payable annually on December 31.
| What is the amount of Evangels unamortized bond discount at the end of the first year? | |
| A. | $621 |
| B. | $2,452 |
| C. | $3,793 |
| D. | $3,172 |
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Principles Of Financial Accounting
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st Edition
0077525264, 978-0077525262
