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On June 30, 2020, Pearl Company issued $4,860,000 face value of 14%, 20-year bonds at $5,591,239, a yield of 12%. Pearl uses the effective-interest method
On June 30, 2020, Pearl Company issued $4,860,000 face value of 14%, 20-year bonds at $5,591,239, a yield of 12%. Pearl uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31.
Total cost of borrowing over the life of the bond $ Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2021, balance sheet. (Rol Pearl Company Balance Sheet December 31, 2021 Long-term Liabilities Bonds Payable 680400 Premium on Bonds Payable 9735 Book Value of Bonds Payable 690135Step by Step Solution
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