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On January 1, Year 1. Weller Company issued bonds with a $425,000 face value, a stated rate of interest of 9%, and a 10-year term
On January 1, Year 1. Weller Company issued bonds with a $425,000 face value, a stated rate of interest of 9%, and a 10-year term to maturity. Weller uses the effective interest method to amortize bond discounts and premiums. The market rate of interest on the date of issuance was 7%. Interest is paid annually on December 31 Assuming Weiler issued the bands for $436,940, what is the carrying value of the bonds on the December 31, Year 3? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice 5429.01 $420270 1421075 5412100 P On January 1, Year 1, Hanover Corporation issued bonds with a $72,000 face value, a stated rate of interest of 8%, and a 5-year term to maturity. The bonds were issued at 97 Hanover uses the straight-line method to amortize bond discounts and premiums, Interest is payable in cash on December 31 each year, The journal entry used to record the issuance of the bond and the receipt of cash would be (Round your answer to the nearest whole dollar amount.) Multiple Choice Account Title Cash Bonds Payale Debit 72,000 Credit 72.000 Credit Account Title Cash Discount on Bonds Payable Bonds Payable Debit 69,840 2,160 72,000 Credit Account Title Cash Discount on Bonds Payable Bonds Payable Debit 71,568 432 72,080 Credit Account Title Cash Discount on Bonds Payable Bonds Payable Debit 72,000 432 71,568
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