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Teletronics, Inc. issued $1,000,000 of 6.5%, 8-year bonds dated June 1, 2001 , with semiannual interest payments on June 1 and December 1. The bonds
Teletronics, Inc. issued $1,000,000 of 6.5%, 8-year bonds dated June 1, 2001 , with semiannual interest payments on June 1 and December 1. The bonds were issued on June 2001 at 103 3/8. Teletronics's year-end is December 31 a. Were the bonds issued at a premium, a discount, or at par? b. Was the market rate of interest higher, lower, or the same as the contract rate of interest? c. If the company uses the straight-line method of amortization, what is the amount of d. What is the carrying value of the bonds on December 31, 2001? interest expense Teletronics will show for the year ended December 31, 2001
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