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You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the company's interest expense for the year ended
You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the company's interest expense
for the year ended December Your accounting group provided you the following information on the company's debt:
Note: Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
On July Moonlight Bay issued bonds with a face amount of $ The bonds mature in years and interest of
is payable semiannually on June and December The bonds were issued at a price to yield investors Moonlight
Bay records interest at the effective rate.
At December Moonlight Bay had a installment note payable to Third Mercantile Bank with a balance of $
The annual payment is $ payable each June
On January Moonlight Bay leased a building under a finance lease calling for four annual lease payments of $
beginning January Moonlight Bay's incremental borrowing rate on the date of the lease was and the lessor's implicit
rate, which was known by Moonlight Bay, was
Required:
Calculate interest expense for the year ended December
Note: Round your answer to nearest whole dollar.
Answer is complete but not entirely correct.
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