Question
Rutland, Inc issued $200,000, 11%, 15-year bonds on January 1, 2015. These bonds pay interest semi-annually on June 30 and December 31. The bonds were
Rutland, Inc issued $200,000, 11%, 15-year bonds on January 1, 2015. These bonds pay interest semi-annually on June 30 and December 31.
The bonds were issued for $186,235, to yield 12%.
How much interest expense will Rutland report for 2015 on these bonds?
| a. | $11,000 | |
| b. | $11,158 | |
| c. | $22,000 | |
| d. | $22,359 |
Refer to the information above for Rutland, Inc.
What is the carrying value of the bond on December 31, 2015 (the end of the first year of the bond issue)?
| a. | $186,061 | |
| b. | $222,359 | |
| c. | $186,594 | |
| d. | $186,409 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditor Squad
Authors: IndigoPine Designs
1st Edition
B084Q9WM6S, 979-8609911131
