Question
Smile company issued 6,000,000, 11%, 10-year bonds on May 31, 2020, when the market interest was 10%. The bonds are priced at 106.25. The bonds
Smile company issued 6,000,000, 11%, 10-year bonds on May 31, 2020, when the market interest was 10%. The bonds are priced at 106.25. The bonds pay interest on May 31 and November 30.
-What is the carrying amount of the bond on the December 31,2020 statement of financial position?
-What is the total interest that Smile company will record in the year 2020?
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Answer Part 1 Carrying Value of Bond as on 31 December 2020 issue price 1 market intere...
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Accounting Principles Part 3
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
6th Canadian edition Volume 1
1118306805, 978-1118306802
