Question
Parker Company issued ten-year, 9%, bonds payable in 2020 at a premium. During 2020, the company's accountant failed to amortize any of the bond premium.
Parker Company issued ten-year, 9%, bonds payable in 2020 at a premium. During 2020, the company's accountant failed to amortize any of the bond premium. The omission of the premium amortization will
A.cause net income for 2020 to be overstated.B.cause retained earnings at the end of 2020 to be overstated.C.not affect net income for 2020.D.cause net income for 2020 to be understated.
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Principles Of Financial Accounting
Authors: Jerry J. Weygandt, Michael J. Atkins, Donald E. Kieso, Paul D. Kimmel, Valerie Ann Kinnear, Barbara Trenholm, Joan E. Barlow
1st Canadian Edition
1118757149, 978-1118757147
