Question
On October 1, 2012, Renfro Co. purchased to hold to maturity, 2,000. $1,000, 9% bonds for $1,980,000 which includes $30,000 accrued interest (purchase price was
On October 1, 2012, Renfro Co. purchased to hold to maturity, 2,000. $1,000, 9% bonds for $1,980,000 which includes $30,000 accrued interest (purchase price was 1,950,000). The bonds, which mature on February 1, 2021, pay interest semiannually on Feb.1st and Aug.1st. Renfro uses the straight-line amortization method. the bonds should be reported in the Dec 31, 2012 balance sheet with a carrying value of:
Answer: $1,951,500
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Financial Accounting Fundamentals
Authors: John J. Wild
5th edition
1308500102, 1308500106, 78025753, 978-0078025754
