Question
On September 30, 2021 the company issued a 5-year, 4%, $500,000 bond when the market rate was 5% and it pays interest semi-annually on March
On September 30, 2021 the company issued a 5-year, 4%, $500,000 bond when the market rate was 5% and it pays interest semi-annually on March 31 and September 31. The company uses the effective interest rate method for the amortization of bond discounts and premiums.
The year end is Jan 31.
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Financial Accounting Tools for business decision making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
978-1119191674, 047053477X, 111919167X, 978-0470534779
