Question
On January 1, Flounder Inc. issued $5017000, 9% bonds for $4752000. The market rate of interest for these bonds is 10%. Interest is payable
On January 1, Flounder Inc. issued $5017000, 9% bonds for $4752000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Flounder uses the effective-interest method of amortizing bond discount. At the end of the first year, Flounder will report a carrying value of the bonds payable of $241330. $4802170. $4775670. $4778500.
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Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
