Question
On January 1 of the current year, Barton Corporation issued 7%, 5-year bonds with a face value of $112,000. The bonds are sold for $106,400.
On January 1 of the current year, Barton Corporation issued 7%, 5-year bonds with a face value of $112,000. The bonds are sold for $106,400. The bonds pay interest semiannually on June 30 and December 31, and the maturity date is December 31, 5 years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the current year ended December 31 is
a.$8,960
b.$3,920
c.$9,520
d.$560
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The Craft Of Auditing For Accounting Undergraduates
Authors: Eldar Maksymov
1st Edition
1516589890, 9781516589890
