Question
On March 1, 2020, Holister Electric Inc. issued and sold $120,000, 6 year bonds with an interest rate of 7%. The market rate at the
On March 1, 2020, Holister Electric Inc. issued and sold $120,000, 6 year bonds with an interest rate of 7%. The market rate at the time of issue was 8%. Any premium or discount on the bond is amortized using the effective interest rate method. Interest will be paid annually on February 28. Use a 4 decimal factor for the bond calculation.
how record this transaction
Interest
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Financial & Managerial Accounting
Authors: Carl Warren
12th Edition
1285534646, 978-1133952428
