Question
On June 30, 2017, Crane Company issued $4,300,000 face value of 13%, 20-year bonds at $4,623,487, a yield of 12%. Crane uses the effective-interest method
On June 30, 2017, Crane Company issued $4,300,000 face value of 13%, 20-year bonds at $4,623,487, a yield of 12%. Crane uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31.
(1)The issuance of the bonds on June 30, 2017.
(2)The payment of interest and the amortization of the premium on December 31, 2017.
(3)The payment of interest and the amortization of the premium on June 30, 2018.
(4)The payment of interest and the amortization of the premium on December 31, 2018.
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The Process Auditing Techniques Guide
Authors: J. P. Russell
1st Edition
0873895959, 978-0873895958
