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Please answer question 18. Use information from Question 17, but use straight line anortization method of bonds. thank you. 7) On January 2 , year
Please answer question 18. Use information from Question 17, but use straight line anortization method of bonds. thank you.
7) On January 2 , year 1 , West Co. issued 9 percent bonds in the amount of $500,000, which mature on January 2, year 11 . The bonds were issued for $469,500 to yield 10%. Interest is payable annually on December 31 . West uses the effective interest method of amortizing bond discount. In its June 30 , year 1 balance sheet, what amount should West report as bonds payable 18) Following from problem 18 above if the straight- line method of amortization were used, the amount West should report as bonds payable would be: a) $469,500 b) $470,475 c) $471,025 d) $500,000 Step by Step Solution
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